JUDGMENT

PATHAK, CJI. :— These appeals by special leave raise the question whether the High Court is right in holding that the proviso to sub-sec. (1) of S. 25 of the Wealth Tax Act cannot be invoked by the Revenue on the facts of this case.

2. The respondent is assessed in the status of an individual under the Wealth Tax Act, 1957, and these appeals relate to the assessment years 1958-59, 1959-60 and 1960-61 for which the corresponding valuation dates are 31 March, 1958, 31 March. 1959 and 31 March, 1960 respectively.

3. The respondent is a share holder in Walchand and Company Private Limited. On each of the three valuation dates she held 140 shares in the Company. For the purpose of assessment under the Wealth Tax Act, the respondent adopted the valuation of the shares at their break-up values with paid up capital and reserves as there was no market quotation for those shares. When making the assessment orders for each of the three assessment years, the Wealth Tax Officer rejected the valuation of the shares as claimed by the respondent, and estimated their value on the basis of capitalisation of profits at six per cent for the assessment year 1960-61 and on the basis of the break-