The appellant/assessees are Hindu Undivided Families, which owned properties at Chennai. Both the assessees entered into a Development Agreement with a builder, in terms of which, the assessees were entitled to 60% of the total built up area to be constructed by the developer at its cost and in consideration, the developer was entitled to 40% of undivided share in the land and entitled to retain proportionate 40% of the built up area. The land owners received a non-refundable security deposit of Rs. 10,00,000/- each, during the previous year relevant to the assessment year 1996-97. According to the assessees, from the assessment year 1999-2000, the developer commenced selling the built up area and directed the land owners to execute sale deeds in respect of undivided share of the land to the nominees/purchasers of flats from the builder.