S.H. Kapadia, J. - (1.) THE following question is proposed for admission of these appeals : Whether the Appellate Tribunal is right in law and on facts in cancelling the penalty levied under Section 271(1)(c) of the Act on the ground that there was loss assessed in the year under consideration, without appreciating the fact that there was positive income which was reduced to nil only after allowing set off of carried forward losses of earlier years ?
(2.) AT the outset, learned Counsel for the appellant (CIT) fairly admits that earlier in Tax Appeal No. 167 of 2005 similar question was proposed for admission of the appeal and by order dated October 4, 2005, CIT v. Avon Flours P. Ltd. : (2009) 313 ITR 400 (Guj) (Appx.) the appeal was dismissed. Following the aforesaid decision on similar question as proposed in these appeals, we see no merit in these appeals. Accordingly the appeals stand dismissed." The department preferred appeals to the Supreme Court. ORDER
(3.) LEAVE granted.;