judgment

HARJIT SINGH BEDI, J. —

1.Leave granted.

2.This appeal by way of special leave is directed against the judgment of the Division Bench of the Madras High Court dated 08th February 2006 whereby the appeal filed by the Revenue under section 260 A of the Income-tax Act 1961 (hereinafter called the “Act”) against the order of the Income-tax Tribunal allegedly raising questions of law has been dismissed on the premise that no substantial question of law in fact arose for consideration. The facts leading to the appeal are as under:-

3.The respondent-assessee vide a registered sale deed dated 26.10.1998 purchased certain land at Brindavan Road, Fairlands, Salem for a sum of Rs.4.10 lakhs. During a search of the office and residential premises of Polimer Net Work, certain notes on loose sheets allegedly in the hands of the respondent were found and seized by the department. In his statement recorded on 8.12.1998, the assessee submitted that he could not remember as to why the notings had been made. The statement was further confirmed by another statement on 11.12.1998. The department also recorded the statement of the vendor Rajarathinam on 8.12.1998 which too was confirmed on 11.12.19