1. The admitted facts are that the income tax return filed by the respondent assessee for Assessment Year 1991-1992 was accepted under S.143(1) of the Income Tax Act . After some time, the assessing officer came to know that there was a sale agreement dated 19-6-1984 entered into between the respondent and Bank of Maharashtra to sell a building for Rs 85,40,800 on the condition that the sale would be completed only after five years of the agreement but before expiration of sixth year at the option of the purchaser and the purchaser can rescind the same at certain consideration. After the Bank had paid to the assessee company on 20-6-1984 the sum of Rs 84,47,111, being 90% of the consideration agreed upon, the assessee put and handed over possession in part performance of the agreement of sale to the Bank on 20-6-1984 itself.

2. By the letter dated 12-6-1990, in terms of Clause 5 of the agreement of sale dated 19-6-1984, the Bank called upon the as