COMMISSIONER OF INCOME TAX Vs. PURSHOTTAMDAS P. PATEL

JUDGEMENT

(1.) This appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"?) is directed against the order dated 15.06.2007 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench "A"? in IT(SS)A No. 101/Ahd/2003 for block period 1.4.1986 to 21.1.1997.

(2.) By an order dated 19.03.2008, this appeal came to be admitted on the following substantial questions of law:

(3.) The assessment is for the block period 01.04.1986 to 21.01.1987. The facts stated briefly are that a search came to be conducted under section 132 of the Act at the premises of Shyam Builders Group on 21.01.1997, during the course of which, a banakhat dated 30.06.1996 was found and seized. The banakhat was for sale of land admeasuring 92,500 square yards, located at Vastral, Taluka Dascroi, District Ahmedabad. As per the banakhat, the land was purchased by Shri Bhagwandas K. Patel and his associates from Shri Udaybhai D. Bhatt and Shri Purshottambhai P. Patel, viz., the assessee herein, at the rate of Rs. 565/- per square yard. The total purchase consideration for the land worked out to Rs. 5,22,62,500/- (Rs. 565 - 92500). In terms of the banakhat, the seller of the land had received Rs. 1,31,00,000/- in cash on 30.06.1996. Thereafter, Shri Udaybhai Bhatt and Shri Purshottambhai Patel had signed on revenue stamp on page-7 of the banakhat confirming that they had received a further sum of Rs. 78,00,000/- in cash on 01.11.1996 as first installment, as agreed in the banakhat.