Judgment:
A.M. Sapre, J.
1. This is an application made by the Revenue (Income-tax Department) under Section 256(2) of the Income-tax Act, 1961, seeking a reference to be made to this court on certain questions of law which according to the Revenue arise out of the order passed by the Tribunal for being answered by this court under Section 256(1) of the Act. This application arises out of an order dated June 25,1993, passed by the Income-tax Appellate Tribunal, Indore, in I. T. A Nos. 557/Ind of 1991, 221/Ind of 1991, 163/Ind of 1993 and 485/Ind of 1991. In the opinion of the Tribunal, no referable question of law arises out of the order passed by the Tribunal and hence, it being pure finding of fact and is covered by the decision of the Supreme Court, the application made by the Revenue to the Tribunal under Section 256(1) of the Act was dismissed giving rise to filing of this application by the Revenue under Section 256(2) of the Act.
2. Heard Shri R. L. Jain, learned counsel for the applicant and Shri B. K. Joshi, learned counsel for the non-applicant.
3. Having heard learned counsel for the parties and having perused the record of the case, we are of the view that the Tribunal was right in rejecting the application made by the Revenue under Section 256(1) of the Act and hence, we do not find any merit in this application.
4. In our opinion, the issue involved in this case relates to addition/deletion of certain amount under Section 69 of the Act. The authorities while accepting the explanation offered by the assessee deleted the addition. In other words, the impugned addition was not sustained in view of the satisfactory explanation offered by the assessee in relation to the source of income. Now, once the explanation offered by the assessee is accepted by the taxing authorities and the same having been upheld up to the Tribunal in second appeal, then, in our opinion, no question of law as such arises in this case which can be said to be a referable question for answer under 256(1) of the Act.
5. Since, in our opinion, the issue being mostly of facts and no issue of law is involved, there is no case made out for allowing this application and calling for any reference. The application is accordingly, dismissed.