Hegde, J. - (1.) These are assessee's appeals by certificate, from the judgment of the High Court of Calcutta in a Reference under S. 27 (1) of the Wealth-tax Act (to be hereinafter referred to as the Act). At the instance of the assessee (which will hereinafter be referred to as the "company") as well as the Commissioner of Wealth Tax, West Bengal, the Income-tax Appellate Tribunal 'B' Bench, Calcutta referred the following questions to the High Court for its opinion:"(1) Whether on the facts and in the circumstances of the case, the amounts of £ 1,99,940 and £ 1,92,907, £ 98,017 standing in the special reserve account in the books of the assessee company were deductible in determining the net wealth of the company for the assessment years 1957-58, 1958-59 and 1959-60 respectively (2) Whether on the facts and in the circumstances of the case, the amounts of £ 1,54,434, £ 2,08,934 and £ 2,62,811 standing in the shareholders accounts as on respective valuation dates were deductible in determining the net wealth of the company for the assessment years 1957-58, 1958-59 and 1959-60 respectively (3) Whether on the facts and in the circumstances of the case the amounts of £ 66,275, £ 1,31,180 and £ 2, 74,587 out of the debentures of the Company were allowable as debts owed by the company in the light of Section 2 (m) read with Section 6 of the Wealth-tax Act -
(2.) The High Court answered all the three questions in favour of the Revenue. Hence these appeals.
(3.) The assessee is a sterling company. In the relevant assessment years, it was operating the Calcutta Tramways Co. It is a non-resident company for the purpose of Explanation 2 to S. 6 of the Act. The assessment years with which we are concerned in these appeals are 1957-58, 1958-59 and 1959-60 and the relevant valuation dates are 31st December, 1956, 31st December 1957 and 31st December 1958 respectively. The Wealth Tax Officer valued the assets of the company under S. 7 (2) (a) of the Act.;