Judgment

PATHAK, J.:- These appeals, by special leave, are directed against a judgment dated Sept. 17, 1971 of the High Court of Delhi, disposing of an income tax reference.

2. There was a Hindu undivided family consisting of the Karta, Lala Sham Nath and his three sons, Rajinder Nath, Ram Chander Nath and a minor, Surinder Nath. The family carried on business. On April 29, 1949, land was acquired in Sunder Nagar, New Delhi in the name of the Karta, and the price was paid out of the books of the family. A building was constructed on the land was completed in September 1954. Another building was constructed in the following year on a plot at Gold Links, New Delhi.

3. On March 18, 1950, there was a partial partition of the Hindu undivided family, and its business was taken over by a partnership firm Messrs. Faqir Chand Raghunath Dass consisting of Lala Sham Nath and the two elder sons, Rajinder Nath and Ram Chander Nath. The partnership firm debited a sum of Rs. 98, 418/- in the building account of the firm towards the cost of construction of the Sunder Nagar property during the assessment year 1955-56. In the assessment year 1956-57, the partnership firm debited a sum of Rs. 99,148/- o