1. - This is a reference under section 27(1) of the Wealth-tax Act, 1957 (hereinafter to be called as "the Act"), made by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, at the instance of the Commissioner of Wealth-tax, Jodhpur, for answering the following question of law, namely :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the entire amount of loan liability of the assessee, towards purchase of 1,150 shares of the Bank of Rajasthan Ltd., should be allowed as a deduction while computing the net value of the shares of the said company held by the assessee ignoring any deduction of the said loan liability which is attributable to any part of the value of the said shares that is otherwise exempt from tax under section 5(1)(xxiii) of the Wealth-tax Act, 1957 ?"

2. The facts of the case giving rise to this reference may be summarised thus. The case relates to the assessment year 1974-75. The assessee is a Hindu undivided family. It was originally having 500 shares of the Bank of Rajasthan Ltd., the value of which was fully covered by the exemption under section 5(1)(xxiii) of the Act. Subsequently, the