( 1 ) AT the instance of the revenue, the following two questions have been referred to this court for its opinion under the provisions of section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act ). 1. Whether, on the facts and in the circumstances of the case, and in law, the Tribunal was right in holding that the I. T. O. not having mentioned in draft order submitted to I. A. C. under section 144b of the I. T. Act about charging of interest under sec. 139 (8) and 217 (1a), no order for levy of the said interest could have been made in the final order passed thereafter with prior approval of the Inspecting Asstt. Commissioner of Income-tax?2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the I. T. O. not having mentioned in draft order submitted to the I. A. C. u/s 144b of the Act about initiating penalty proceedings u/s 273 (A) and u/s 271 (1) (a) of the Act, no order for initiation of the said penalties could have been made in the final order passed thereafter with prior approval of the Inspecting Assistant Commissioner of Income-tax?"

( 2 ) THE facts, in a nutshell, giving rise t