EMPIRE STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this application under S. 256(2) of the IT Act, the petitioner seeks reference of the following question of law to this Court :

(2.) THE Tribunal has come to the conclusion that the money which was borrowed from the banks was diverted by the partners for personal use. Money was borrowed by paying 15 per cent, interest and only 6 per cent, was charged from the partners. 9 per cent interest which was paid by the firm was disallowed.

(3.) WE , however, find that the Tribunal has referred to the decision of the CIT (Appeals) who had examined the accounts of the partners and had referred to the debit balances of three of the partners and the credit balances of the four others. After taking the accounts of all the partners into consideration, the Tribunal found as a fact that there had been an increase in the debit balance, and, therefore, the monies which had been drawn from the banks had been diverted for the personal use of the partners. This is a finding of fact and, in our opinion, no question of law arises.