1. - This appeal by the Revenue has been filed against the judgment of the learned Tribunal dated 4.2.2005, allowing the appeal of the assessee, and quashing the reassessment proceedings. The appeal was admitted vide order dated 23.5.2006, by framing the following substantial question of law.

"Whether in the facts and in the circumstances of the case, the Tribunal was justified in holding that the proceedings for re-assessment under Section 148/147 of the Income Tax Act were initiated by the Assessing Officer on non-existing facts because ultimately, the assessee has been able to explain that the income which was believed to have escaped assessment was explainable but some other additions were made under the assessment order?"

2. The necessary facts are, that some search was undertaken at some business establishment, and in that process one diary was found, which showed some entry regarding purchase of plot of land by the present assessee, in village 1-a-chhoti, for a consideration of Rs. 1,66,000/-, while in the agreement, it was shown to have been purchased for Rs. 45,000/-. On this basis, a notice under Section 148 was issued to the present assessee. Then query letters we