COMMISSIONER OF INCOME TAX Vs. SWAMY N A

JUDGEMENT

(1.) THE present reference is under Section 256(2) of the Income-tax Act, 1961, arising out of the order of the Tribunal. THE reference called for reads as hereunder :

(2.) ON the application of the Revenue, the Tribunal refused to refer the case to the High Court by observing :

(3.) IN the instant case, the Tribunal found that in the earlier years, the profit had been calculated at ten per cent. minus the bonus paid. IN comparable cases of handling contractors, such was the method adopted. The finding of fact arrived at by the Tribunal was that the quantum of income should be estimated by reducing the claim of bonus from ten percent. of the receipts keeping in view the nature of the business carried on by the assessee. IN my opinion, in estimating the income, the Tribunal kept in view the conditions of trade obtaining and the average margin of profit in the particular line of business which is a relevant consideration for arriving at a finding of fact. I am, therefore, of the further opinion that it is not possible to say that the estimate of income was arbitrary or capricious to justify holding that some error of law has been committed by the Tribunal. What would be the net taxable income and the quantum of expenditure allowable to the assessee is a pure question of fact and not of law. The finding of fact arrived at by the Tribunal is final on this aspect and no interference can be made on a finding of fact.