S.K. Seth, J.

1. This order shall also govern the disposal of connected IT Appeal No. 64 of 2006 and IT Appeal No. 52 of 2006 as all of them are directed against the composite and common order passed by the Tribunal involve common question of law between the revenue and the assessee pertaining to assessment years 1994-95, 1995-96 and 1999-2000. In all these appeals following question of law was formulated at the time of admission:

Whether the Tribunal erred in law in setting aside the order Annex. P/3 passed by the Commissioner under Section 263 by its order Annex. P/2 on the ground that the order of the assessing officer was not erroneous or prejudicial to the interest of the revenue ?

2. For the sake of convenience, facts, which lie in narrow compass, have been taken from above appeal which pertains to the assessment year 1999-2000. Assessee is in the business of purchase of agricultural land and sale of developed residential plot. For assessment year assessee filed the return showing Rs. 9,982 as the total income. After scrutiny, notice under Section 143(2) read with Section 142(1) was issued to the assessee. In response, Authorised Representative appeared along with docume