P.D.Dinakaran, J.

The revenue is the appellant in all these appeals which were preferred against the order of the Income Tax Appellate Tribunal dated 26.05.1999 allowing the appeals preferred by the respondents-assessees in each of the appeals.

2. In precise, the facts of the case is that the respondents-assessees are shareholders of Kencess Enclave Project, which commenced its business in the year 1992 and was engaged in the business of construction and selling of residential and commercial buildings. K.Narasa Reddy designated as the Managing Director of the assessee company held 50% of the shares and the remaining 50% of the shares was shared by Subba Reddy (Individual) designated as the Director of the Company, Subba Reddy (HUF) and Rajini Reddy, wife of Subba Reddy.

3. There was a search under Section 132 of the Income Tax Act, 1961 on 23.02.1996 in the premises of the Kences Enclave Project in which the respondents/assessees were holding 100,900 shares. In the course of the search the following documents were seized:

i.statement of accounts prepared by one V.C.Gupta, Executive Director (Finance) of the company, relating to the settlement of accounts to the outgoing D