V. B. GUPTA, J.

( 1 ) THE present appeal under Section 260 A of the Income Tax Act, 1961 ( for short as 'act') has been filed by the Revenue against the impugned order dated 31st March, 2006 passed by the Income Tax Appellate Tribunal ( for short as 'tribunal' ) in ITA No. 2019/del/2004 for the assessment year 1985-1986 vide which the appeal of the Assessee was allowed.

( 2 ) THE brief facts of the case are that the Assessee filed a return declaring loss of Rs. 47,493/- on 29th March, 1996, which was accepted by an order under Section 143 (3) of the Act dated 16th January, 1998.

( 3 ) AN information was received from Deputy Director (Investigation), gurgaon that during the investigation proceedings in the case of Raj Kumar bhatia, statement of Shri M. Goenka, Proprietor of M/s. M. Goenka and Company was recorded under Section 131 of the Act on 28. 01. 2000. In his statement, Shri m. Goenka stated that he used to issue bogus bills of sale and purchase of the shares. He further stated that the transaction of sale of shares of M/s Ashoka commercial Pvt. Ltd. made by the present Assessee was a bogus one. On the basis of this information, the Assessing Officer issued notice under Sec