Law:

Section:

Section 256 of the Income-tax Act, 1961 - Reference - General principles - Assessment years 1972-73 and 1973-74 - Whether High Court cannot disturb or go behind any finding of fact given by Tribunal even on ground that there is no evidence to support it unless it has been specifically referred as a question of law to be decided by Court under section 256(1) - Held, yes - Whether in absence of challenge to Tribunal's Finding of fact High Court has to decide question referred in light of Tribunal's finding of facts - Held, yes Section 4 of the Income-tax Act, 1961 - Mutual concern - Assessment years 1972-73 and 1973-74 - Assessee, a trade association of planters, claimed that subscription received by it from its members was not its income liable to be taxed - Tribunal's finding of fact was that assessee was not a mutual association which finding of fact was not challenged - Whether subscription received by assessee from its members was income liable to be taxed - Held, yes FACTS The assessee, a trade association of planters, claimed that the subscription received by it from its members was not income liable to be taxed under the Act. The ITO disallowed the assessee's claim. On appeal, the AAC allowed the assessee's claim holding that in the absence of any fresh materials it was not open to the ITO to deviate from the practice followed by the department for the past many years of treating the assessee as a mutual concern, the subscription receipts of which were not income. On further appeal, the Tribunal held that the assessee was not a mutual association and, therefore, the subscription received by the assessee from its members was income liable to be taxed. Accordingly, it reversed the order of the AAC and restored the order of the ITO. On reference, the assessee contended, inter alia, that the Tribunal had gone wrong in holding that the assessee was not a mutual association and that the High Court should consider the question referred as one which took in its compass whether the finding of the Tribunal that the assessee was not a mutual association was correct or not. HELD The Court cannot disturb or go behind any finding of fact given by the Tribunal even on…

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