Reasonable cause for delayed wealth-tax filing is a factual finding; no question of law arose for reference.

A finding that an assessee was prevented by reasonable cause from filing wealth-tax returns on time is a finding of fact, not a question of law, where it rests on the record and the surrounding circumstances. The Tribunal cancelled the penalties after concluding that there was no conscious default and that the explanation of ignorance of the filing obligation was supported by the evidence. Because the dispute challenged only that factual appreciation, no referable question of law arose and the reference applications were not maintainable.

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Issues: Whether the Tribunal's finding that the assessee was prevented by reasonable cause from filing the wealth-tax return within time, and its cancellation of the penalties under the wealth-tax law, gave rise to any question of law fit for reference.

Analysis: The Tribunal had cancelled the penalties on a factual finding that the assessee did not consciously default in filing wealth-tax returns and that the surrounding circumstances supported the explanation of ignorance of the obligation to file returns. The order under challenge turned on the absence of material to hold that the failure was without reasonable cause. Such an inference, based on the record and the appreciation of facts, is not converted into a question of law merely because the Revenue disputes the conclusion. Following the governing view that a finding of reasonable cause for delay is a finding of fact, the reference jurisdiction cannot be invoked on these questions.

Conclusion: No question of law arose from the Tribunal's order, and the reference applications were not maintainable.

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