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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income  Where addition on basis of which penalty was levied had been deleted by Tribunal whose order had become final, penalties levied on assessee were also liable to be deleted. [A.Y. 1981-82]. Addition was made to the assessee's income during reassessment on the ground that the assessee had understated the purchase price of certain shares. Subsequently, penalties were imposed on the assessee under sections 271(1)(a), 271(1)( c) and section 273(2)(aa);. In quantum appeal, the addition was deleted. In appeal against penalties, the Tribunal held that since the entire addition was deleted, there was no case for sustaining the penalty under any of the three provisions of the Act. Held that during the course of arguments, it had not been disputed that the addition made by the Assessing Officer was deleted by the Tribunal and that order had become final. Once the entire addition had been deleted, then there remained no case for penalty whatsoever. The very basis of issuance of notice had disappeared. Once the addition was deleted, there was no requirement for the assessee to file the return showing higher income. Admittedly, the present case was not a case of concealment of income nor the revenue had been able to establish such fact. Therefore, the Tribunal had rightly come to the conclusion that after the entire addition was deleted, there was no case for sustaining the penalty under any of the JUDGMENT Satish Kumar Mittal, J.-Pursuant to the directions given by this court, vide order dated February 26, 2001, passed in I.T.C. No. 157 of 1996 filed by the Revenue, to draw up a statement of the case and refer the following substantial question of law to this court, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the ITAT"), has referred the said question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in cancelling the penalties levied under section 271(1)(a), 273(2)(aa) and 271(1)( c) merely holding that since the entire addition made by the…

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