K.L. Manjunath, J.— Heard the counsel for the parties.

2. This appeal is by the assessee challenging the legality and correctness of the order passed by the Tribunal, Bangalore Bench in ITA No. 860/Bang/1996, dt. 20th Oct., 2003 wherein the appeal filed by the Revenue against the order of CIT(A) has been allowed in part. The facts of the case are as hereunder:

The appellant is a registered partnership firm consisting of 15 partners. The firm is being managed by three partners by name, Irfan Razack, K. Rahman Khan and Sri Sadath All Khan. The firm constructed a commercial complex known as 'Fifth Avenue' consisting of ground + three floors. The building is consisting of 82 commercial shops. The building was under construction till the end of January, 1993. Different shops are sold by the firm under different sale deeds to several buyers. On 5th Jan., 1993 exercising the powers under Section 132 of IT Act, M/s India Builders Corporation (which is also a partnership firm) was searched. During the search, document pertaining to the appellant firm was seized. Based on the documents seized during the search conducted in the premises of one of the partners of the appellant firm, the