PRAKASH KRISHNA, J.

( 1 ) IN Income Tax Reference No. 68 of 1987 the Income Tax Appellate Tribunal, Allahabad has referred the following question of law under Section 256 (1) of the Income Tax Act 1961 (hereinafter referred to as the Act) for opinion to this Court:" whether Section 5 of the Indian Limitation Act is applicable to the Income-tax proceedings?"

( 2 ) WHEREAS in Income Tax Reference No. 275 of 1991 which relates to proceedings for imposition of penalty under Section 273 (c) of the Act for the Assessment Years 1977-78 and 1978-79, the Income Tax Appellate Tribunal has referred the following identical question of law for opinion to this Court:-

"whether the Tribunal was correct in law in cancelling penalty of Rs. 15, 000)/- imposed Under section 273 (c) in view of the facts and circumstance of the case when the order dated 21. 1. 1986 in I. T. A. Nos. 2086 and 2087 (Alld) relied upon is already subjudice before the Honble High court by way of departmental application Under Section 256 (1) against it allowed by the tribunal?"

( 3 ) BRIEFLY stated the facts giving rise to the present reference No. 68 of 1987 are as follows:the reference relates to the assessment year 1977-78 a

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