Law:

Section:

Section 256 of the Income-tax Act, 1961 - Reference - Question of fact - Whether Tribunal finding that the assessee-firm was using a certain sum for its business purpose and hence interest paid thereon was allowable under section 37(1) was a finding of fact - Held, yes Facts The assessee-firm paid interest to the minors on the gift made by the partner by book entries. The Tribunal found that the amount in question was being used by the firm for the purpose of its business and the interest paid thereon represented expenditure incurred for the purpose of the business and, therefore, it allowed the interest payments under section 37: On application for reference under section 256(2): Held It was a finding of fact that the amounts in question were being used by the assessee for the purpose of its business. Therefore, no question of law arose in the present case. R.N. Surolia for the Applicant. Prem Ashopa for the Respondent. ORDER 1. We have heared the learned counsel for the department as well as the learned counsel for the assessee. The Commissioner has submitted this application for giving a direction to the Tribunal to draw a statement of case and to refer the following question of law for our opinion: "Whether, on the facts and in the circumstances of the present case, the Tribunal was justified in holding that interest paid by the assessee…

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