ORDER

Through these three appeals, the appellant-Department has objected to the consolidated impugned order of the learned CIT(A), dated 13-7-2005 for the assessment year 1994.95 to 1996-97 on the following common grounds:--(1) CIT(A) is not justified to annul the penalty order under section 111 of the Income Tax Ordinance, 1979.(2) As per section 239(3) of Income Tax Ordinance, 2001, penalty for any income year ending on or before 30-6-2002 is to be imposed in accordance with the repealed Ordinance but the procedure shall be in accordance with the corresponding provision of this Ordinance.(3) The procedure for imposition of penalty laid down in Income Tax Ordinance, 2001 does not include approval of the Inspecting Additional Commissioner (IAC).(4) CIT(A) is not justified to hold that prior approval of IAC is not a procedural matter but a prerequisite for levy of penalty under the repealed Ordinance.(5) Prior approval of IAC is a prerequisite of procedural nature and is no longer necessary i...