This is an appeal filed by the Revenue challenging the order of the Income Tax Appellate Tribunal, which confirmed the order of the CIT (Appeals) cancelling the assessment of short term capital gain on the respondent assessee for the assessment year 1993-94.

2. We have heard Shri.P.K.R.Menon, learned senior counsel appearing for the Revenue, and Shri.K.Gopalakrishna Kurup, learned senior counsel appearing for the respondent assessee.

3. The facts leading to the controversy are as follows:-

The respondent assessee, which is a partnership firm consisting of close relatives, executed several lease deeds on various dates in August, 1992 and amended some of the lease deeds in December, 1994, whereunder 11.46 acres of land and building thereon belonging to the assessee-firm were given on long term lease for a period of 99 years to a Private Limited Company, the shares of which are held by the partners of the assessee firm for a total consideration of Rs.3,76,43,000/-. In fact, the consideration was paid by the lessee Company by allotment and issue of fully paid up shares of the Company for the entire value of the lease to the partners of the assessee firm. The respondent assessee