Pure factual findings on guessed additions cannot be reopened as a legal reference or remanded for reconsideration.

A finding that a disputed income-tax addition was made on pure guesswork was treated as a finding of fact, and that factual conclusion could not be reopened as a question of law for a reference under section 256(2) of the Income-tax Act, 1961. On that basis, the High Court was not justified in directing a reference or in remanding the matter to the Assessing Officer for re-examination of the same issue.

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Issues: Whether the High Court was justified in directing a reference under section 256(2) of the Income-tax Act, 1961 on a question which had already been concluded by the Tribunal as one of fact, and whether the matter could be remanded to the Assessing Officer for re-examination.

Analysis: The Tribunal had found that the disputed addition was made on the basis of pure guess work, which was a factual conclusion. Such a finding was final and could not be reopened as a question of law for reference. On that footing, there was no basis for sending the matter back to the Assessing Officer for re-examination of the same issue.

Conclusion: The High Court was not justified in calling for a reference; the question was one of fact, not law, and remand was unwarranted. The decision is in favour of the assessee.

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