Judgment

GROVER, J. : These appeals have been brought from a judgment of the Calcutta High Court by certificate in a Wealth Tax Reference. Civil Appeal No. 1834 of 1968 is of the assessee and the other appeal has been filed by the Commissioner of Wealth Tax, West Bengal.

2. It is necessary to deal with the appeal of the Commissioner of Wealth Tax as the other appeal shall also stand disposed of once the question is answered in the Commissioner s appeal. The assessee is a public limited company. In the assesment year 1948-49 the assessee revalued its assets enhancing the existing book value by Rs. 1,45,00,000/- which was credited to the capital reserve account. In assessing the wealth tax payable by the assessee for the assessment year 1957-58 the relevant valuation date being March 31, 1957 the Wealth Tax . Officer proceeded under S.7 (2)of the Wealth Tax Act, hereinafter called the Act and took the valuation of the assets at Rs. 5,10,40,897 as shown in the balance sheet on the relevant date. The assessee claimed that a sum of Rupees 1,45,00,000/- by which the book value of the fixed assets was enhanced in 1948-49 should be deducted in the computation of the net value, It is not cl