Capital contribution by a partner was treated as a factual issue, leaving no referable question of law for reference.

Unexplained capital contribution credited in a firm's books was treated as a partner's contribution rather than income assessable under section 68, because the Tribunal found the creditor's identity and the genuineness of the transaction established. On those factual findings, the issue was one of appreciation of evidence and not a debatable legal question. The Tribunal also held that the credit was assessable in the hands of the individual partner and not the firm, so no referable question of law survived for reference under section 256(1).

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Issues: Whether any referable question of law arose from the Tribunal's finding that the unexplained capital contribution by a partner, credited in the books of the firm, was not assessable under section 68 of the Income-tax Act, 1961 and was attributable to the individual partner.

Analysis: The Tribunal had recorded clear findings that the amount represented capital contribution by the partner, that the identity of the creditor stood established, and that the genuineness of the contribution was proved. On those findings, the matter turned on appreciation of facts rather than on any debatable legal issue. Since the Tribunal had also held that the credit was assessable in the hands of the partner and not in the hands of the firm, no referable question of law survived for reference under section 256(1).

Conclusion: No question of law arose and the request for reference was refused.

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