Unsupported factual finding on money-lending business cannot stand without disclosed evidentiary basis

A factual finding that an assessee carried on a money-lending business cannot stand where the appellate order gives no evidentiary basis for that conclusion. The Tribunal recorded the assessee's assertion that he had taken over and continued the business, but it did not explain the material relied on, such as books of account or other evidence, to support that view. In the absence of a clear factual foundation, the finding was treated as unsupported by record and, therefore, not sustainable.

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Issues: Whether the Tribunal's finding that the assessee carried on money-lending business during the relevant assessment year was supported by material on record.

Analysis: The Tribunal's order recorded the assessee's contention that he had taken over the money-lending business and continued it, but it did not state the evidentiary basis for accepting that contention. The order was found to be cryptic and unsupported by reasons showing that the conclusion rested on books of account or other material. In the absence of a clear factual foundation, the finding could not be treated as one based on evidence.

Conclusion: The answer to the issue is against the assessee and in favour of the Revenue; the finding that the assessee was carrying on money-lending business during the assessment year 1954-55 was not based on any material.

Ratio Decidendi: A finding of fact cannot be sustained where the appellate order records a conclusion without disclosing the evidentiary basis on which it is founded.

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