( 1 ) THIS reference, under Section 27 (1) of the Wealth-tax Act, at the instance both of the assessee and the Commissioner of Wealth-tax, has been made in the following circumstances.

( 2 ) THE assessee is a Sterling Company, incorporated in Great Britain, and is a manufacturer of tea grown in Its own gardens in India.

( 3 ) FOR the assessment year 1957-51 (the relevant valuation date being November 30 1956 ). the assessee claimed that (a) sum of Rs. 51,81,588, representing the value of residential quarters occupied by the employees and labourers of the assessee. (b) a sum of Rs. 11,93,222, representing the value of electric machinery (non-factory), (c) a sum of Rs. 3,58,996. representing the value of stationary wire ropes and crab winches, tubewells, water-supply plant, grinding machines and vehicles of conveyance and (d) a sum of Rs. 76,30,365. representing the amount of taxation liability not actually assessed before the valuation date, should be excluded from the value of the wealth of the assessee, respectively under Sections 2 (e) (ii ). 5 (1) (ix) and 2 (m) of the Wealth-tax Act.

( 4 ) THE Wealth-tax Officer disallowed the claim. The assessee appealed befor