V. B. GUPTA, J.

( 1 ) PRESENT appeal has been filed by the Revenue challenging the order dated 20th October, 2004 passed by the Income Tax appellate Tribunal, Delhi Bench, 'e' (in short as 'tribunal') in ITA no. 9621/d/90 and 142/del/91 for the assessment year 1988-89.

( 2 ) THE Assessee is an Association of Person (in short AOP) consisting of children and grand children of Late Shri Shiv Raj Bahadur and his wife who owned property bearing No. 9, Raj Narain Road, Civil Lines, Delhi. By an agreement dated 1st June, 1981, his children joined together to form the AOP with the common object of re-developing the property and to build flats on the plot.

( 3 ) THE market value of the property was Rs. 30 lacs and after getting necessary permission, the AOP proceeded to construct 24 flats. The members of the AOP were credited with their share in the property which was valued at Rs. 30 lacs and these amounts were shown in the balance sheet prepared by the AOP for the year ending 31st March, 1982, (assessment year 1982-83 ). A return of income was filed by AOP for this assessment year showing the "nil income".

( 4 ) IN respect of year ending 31st March, 1988, which is the year under appe