Judgment

HEGDE, J.

( 1 ) IN these appeals by certificate, the only question arising for decision is: "whether on the facts and in the circumstances of the case, the assessee continued to be the owner of the property for the purposes of computation of income under Section 9 of the Income-tax Act, 1922" (to be hereinafter referred to as the Act ). A Full Bench of the Delhi High Court speaking through S. K. Kapur J. answered that question in the negative. Being dissatisfied with that decision the assessee has brought these appeals.

( 2 ) NOW turning to the facts of the case, the concerned assessment years are 1952-53, 1955-56 and 1956-57, the relevant accounting periods being financial years ending 31/03/1952, 31/03/1955 and Ma 31/03/1956. The assessee is a registered firm deriving income from interest on securities, property, business and other sources. Sometime in the year 1946 it purchased the Nedous Hotel in Lahore for a sum of Rs. 46 lakhs. For that purpose it raised a loan of Rs. 30 lakhs from M/s. Bharat Bank Ltd. , Lahore and a loan of Rs. 18 lakhs from the Raja of Jubbal. The loan taken from the bank was partly repaid but as regards the loan taken from the Raja, the assessee ca