Hakeem, J.—The Income Tax Appellate Tribunal, Bangalore Bench, Bangalore ("the Tribunal"), at the instance of the Revenue, has referred for the opinion of this court the following question of law :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 35 lakhs representing the advance tax paid by the company and shown on the assets side of the balance-sheet should not be deducted from the excess provision for taxation in valuing the shares of M/s. International Instruments (P) Ltd. ?"

2. In order to appreciate the question, it is necessary in the first instance to notice the facts as found by the Tribunal.

3. The assessee as an individual held equity shares in M/s. International Instruments Pvt. Ltd. For the assessment year 1974-75, the assessee declared in his return under the Wealth-tax Act, 1957 ("the Act"), before the Wealth-tax Officer the value of the equity shares held by him at Rs. 220.24 per share. On January 22, 1977, the Wealth-tax Officer completed the assessment determining the share value at Rs. 315. 26 per share and subjected the same to tax under the Act on that basis.

4. Aggrieved by the said orde