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JUDGMENT Kapur, J.-This order will dispose of Income-tax References Nos. 2 of 1967 and 3 of 1967. The Income-tax Reference No. 3 of 1967 relates to the accounting period ended 31st March, 1951, relevant to the assessment year 1951-52, while Reference No. 2 of 1967 to the accounting periods ended March 31, 1952, March 31, 1955, and March 31, 1956, relevant to the assessment years 1952-53, 1955-56 and 1956-57 respectively. The following three questions have been referred to us for our opinion in Income-tax Reference No. 3 of 1967 : "(1) Whether, on the facts and in the circumstances of the case, the assessee was the owner of the property known as Nedous Hotel in Pakistan in the relevant accounting year ?" If the answer to the first question is in the affirmative, "(2) Whether, on the facts and in the circumstances of the case, the assessee was entitled to claim the loss of Rs. 1,70,104 in respect of the ownership of the said property ? (3) Whether, on the facts and in the circumstances of the case, the assessee was entitled to the loss claimed by it by conversion of the purchase price from Pakistan currency to Indian currency in respect of the business carried on at Hoshiarpur with the purchases mentioned above ?" The question referred in the other reference 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 Indian Income-tax Act, 1922 ?" Rai Bahadur Jodha Mal Kuthiala (hereafter referred to as the assessee) is a registered firm. The assessee purchased a property known as Nedous Hotel and the adjoining Mela Ram Buildings in Lahore in February, 1946, for Rs. 46,00,000, and for acquiring this property, the assessee raised interest bearing loan of Rs. 30,00,000 from Bharat Bank Limited. During the previous year relevant to the assessment year 1951-52, the assessee credited a sum of Rs. 1,14,875 on account of interest payable to the lender and paid Rs. 15,000 as interest in the said year. The assessee claimed a loss of Rs. 1,70,104 with respect to the said property by showing the gross annual letting value asnil and claiming the said…

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