Law:

Section:

Reference-Finding of fact-Question whether there was sufficient material for such finding-When. High Court can direct reference on such question.   Though the question whether there was material on which the Tribunal could come to the finding of fact at which it has arrived is a question of law, a direction requiring the Tribunal to refer such a question can be made only if the High Court is of opinion that there was no material for the finding of the Tribunal. If the High Court is of opinion that there was evidence to support the finding of the Tribunal, the High Court cannot direct the Tribunal to refer such a question and have the whole evidence re-examined.   Asu De v. Commissioner of Income-tax (1955) 28 I T R 833 (Punjab) ; In re, Behari Lal Jhandu Mall (1944) 12 'I T R 209 (Lah.) and Californian Copper Syndicate (Limited and Reduced) v. Harris (1904) 5 T C 159 (C. Exch.) ref. JUDGMENT   KHOSLA, C. J.-This is an application under section 66 (2) of the Income-tax Act praying for a mandamus directing the Income-tax Department to state a point of law for the opinion of this Court.   A preliminary objection has been raised on behalf of the respondent to the effect that four applications should have been made, because the point of law arises in four distinct matters, three of them relating to assessment of income-tax and one to excess profits tax. There is some force in this objection, but in view of our decision on the merits of the case it is scarcely necessary to deal with this matter in greater detail.   On merits the facts briefly are that the respondent assessee is a joint Hindu family firm whose main- business was purchase and sale of cloth. It appears that they were also doing some other activities from which income was being derived, e.g., money lending and speculation in bullion. In 1939 this family purchased two plots near its own residential house and constructed buildings upon them. Later on four more plots were purchased and then a few more. The total number of plots purchased was 21, and some of these plots were sold after 1946 at considerable profit. The total profit according to the assessee is stated to be Rs.…