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TMI Blog1957 (12) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... se is the Motor and General Finance Limited, Delhi, and the respondent in the other case is Messrs. Goodwill Pictures Limited, Delhi. The first company, as its name implies, finances motor and other businesses, while the second company carries on the business of distribution and exhibition of cinema films. The first company commenced its business with the purchase and sale of motor vehicles on hire purchase basis, but later extended it to the purchase and sale of land and to the acquisition of films on hire-purchase system. In the accounting year 1945-46 the company made the following addition to the objects clause of its memorandum of associatio : To carry on the business of film finance, whether by system of hire-purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the producer which ended in the passing of a compromise decree on the 30th December, 1948. According to this decree the producer was to pay to the first company a sum of ₹ 5,43,812-5-6 in respect of the amounts of advances and other monies due and payable and a sum of ₹ 3,50,000 in full satisfaction of the settled account of commission in respect of the pictures already delivered by the producer to the first company as well as in respect of the pictures not yet delivered and compensation for early termination of the agency agreement and damages, if any, which might be claimable by the second company from the first company or the producer for non-delivery of Dillagi and for termination of the agency in respect of the pic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancing business that Kardar of Bompay received the finance for producing pictures from the assessee and the finance to Kardar of Bombay resulted in a receipt of net sum of ₹ 2,75,000 by the assessee. It seems to us that there is no force in the argument advanced on behalf of the Department. Even if the advances for production of pictures made to Kardar of Bombay were connected and were incidental to the business of financing the hire purchase of motor cars, the compensation received by the Motor and General Finance Limited was in respect of the cessation of the assessee's activity as a distributor of films. By receiving the net sum of ₹ 2,75,000 the Motor and General Finance Limited divested itself of the right to distribute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the effect that in each case the assessee concerned was faced with the disappearance of a business structure. If the aforementioned finding is correct, there can be no dispute about the legal consequences flowing from that finding since this matter is admittedly well settled. The finding itself is in our opinion, a pure finding of fact............... Being of the opinion that no question of law arises out of the Tribunal's order dated the 19th July, 1954, we dismiss both the applications. The Commissioner of Income-tax has come to this court under section 66(2) of the Indian Income-tax Act, and the question for this court is whether any question of law has arisen which ought to be referred to this court. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o evidence to support the finding of the Tribunal, or if it is not legally sufficient to support the finding, or if there is no competent and relevant material to support the finding, or if the evidence is so improbable as to be incredible and amounts to no evidence, or if the finding is based wholly or partly on conjectures, surmises and suspicions, a question of law arises. The legal effect of evidence is a question of law. It follows as a consequence that if the Tribunal comes to the conclusion that the business structure or an entire activity or organisation of a company has disappeared and if there is an entire failure of evidence to support the finding, the decision raises a question of law. The question whether a particular receipt i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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