SATISH KUMAR MITTAL, J. - (1.) THE Revenue, to draw up a statement of the case and refer the following substantial question of law to this Court, the Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal"), has referred the said question for the opinion of this Court :
(2.) "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the penalties levied under s. 271(1)(a), 273(2)(aa) and 271(1)(c) merely holding that since the entire addition made by the AO has been deleted by the Tribunal, there is no case for sustaining the penalties without appreciating the fact that reference application under s. 256(2) filed against the deletion of addition is pending before the Hon'ble High Court for adjudication." declaring an income of Rs. 55,574. The assessment was completed under s. 143(3) of the IT Act (hereinafter referred to on certain information when it was noticed that the assessee had understated the purchase price of 810 shares of M/s Angoora Wool Combers (P) Ltd.
(3.) 1986, the AO initiated and levied penalty under s. 271(1)(a) for late submission of return. Penalty under s. 271(1)(c) was levied for concealment of income and also under s. 273(2)(aa) for default in payment of advance tax and for filing untrue estimate of the advance tax. The AO, after issuing notice under s. 148 of the Act, proceeded to make a fresh assessment and made an addition of Rs. 1,14,502 on account of undervaluation of the purchase price of shares. The value of each share was fixed at Rs. 149.36.;