1983 (11) TMI 49

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....ed with the character of Hindu undivided family property should be taken as its cost of acquisition in the hands of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the cost of acquisition of property No. G-16, New Delhi, South Extension, in the hands of the assessee-Hindu undivided family was nil ? " The assessee, M/s. Deena Nath Nanda & Sons, is an HUF. The year of assessment in question is 1970-71. The accounting year ended on December 31, 1969. A plot of land, bearing No. 16, Block G, New Delhi, South Extension Scheme, Part I, was purchased by Deena Nath Nanda and his wife, Smt. Rattan Devi Nanda. A two and a half storeyed building thereafter was constructed there....

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....bunal. The Appellate Tribunal, for the reasons mentioned in its order, came to the conclusion that the cost of acquisition of the property in the hands of the assessee was nil. The appeal of the Revenue was allowed partly and the appeal of the assessee was rejected. A similar question came up for consideration before a Division Bench of this court to which one of us (S. S. Chadha J.) was a party. It is reported as Addl. ITO v. Madan Lal Jain and Sons [1983] .140 ITR 200 (Delhi). The provisions of ss. 45 and 48 of the Act were construed. It was held that a profit or gain can accrue only when there is a cost of acquisition and not otherwise. The cost of acquisition contemplated by s. 48 of the Act can be cost of acquisition of the capital ....