9911796707
TMI Blog2008 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... 271(1)(a), 273(2)(aa) & 271(1)(c) – even if reference application u/s 256(2) filed against the deletion of addition is pending before HC for adjudication, penalty were rightly set aside by tribunal – revenue appeal dismissed - 31 of 2002 - - - Dated:- 4-2-2008 - SATISH KUMAR MITTAL and RAKESH KUMAR GARG JJ. JUDGMENT The judgment of the court was delivered by SATISH KUMAR MITTAL J.— 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciating the fact that reference application under section 256(2) filed against the deletion of addition is pending before the hon'ble High Court for adjudication." 2. In the present case, for the assessment year 1981-82, the assessee filed its original return of income on August 24, 1981, declaring an income of Rs. 55,574. The assessment was completed under section 143(3) of the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 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. 5. Feeling aggrieved against the aforesaid order, the assessee went in appeal which was partly allowed by the Commissioner of Income-tax (Appeals). Against that order, the assessee fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id order. The same was also dismissed by the Income-tax Appellate Tribunal while holding that after the entire addition was deleted, there was no case for sustaining the penalty under any of the three provisions of the Act. It has further held that since the very basis had disappeared, the levy of penalty was cancelled. 6. During the course of arguments, it has not been disputed that the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... establish such fact. Therefore, in our opinion, the Income-tax Appellate Tribunal has rightly come to the conclusion that after the entire addition was deleted, there was no case for sustaining the penalty under any of the three provisions of the Act. Accordingly, the reference is answered against the Revenue and in favour of the assessee. 8. Disposed of accordingly. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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