Business use exemption extends to agricultural land and cotton press properties used in the assessee's trade.

Agricultural land used in the assessee's business or profession may fall within the exemption from additional wealth-tax even if it lies within eight kilometres of municipal limits. The relevant schedule provision excludes land and building used for business purposes, and agricultural activity carried on with a profit motive and as an organised course of dealings can itself amount to business. Properties used for a cotton press and ginning factory, including a godown, were likewise treated as business assets on the factual finding that they were used in the assessee's business, and therefore qualified for the exemption.

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Issues: (i) Whether agricultural lands lying within eight kilometres of the municipal limit were liable to additional wealth-tax when used for the assessee's business or profession; (ii) Whether the properties standing in the name of the cotton press were used for business purposes and were therefore exempt from additional wealth-tax.

Issue (i): The relevant provision in Part I of Schedule I to the Wealth-tax Act excludes land and building used for the purpose of the assessee's business or profession, even if the land is agricultural and situated within eight kilometres of the municipal limit. Agricultural activity may itself amount to business when it is carried on with a profit motive and as an organised course of dealings.

Conclusion: The agricultural lands were not liable to additional wealth-tax so far as they were used for the assessee's business.

Issue (ii): The record showed that the assessee was running a cotton press and ginning factory with a godown on part of the land, and the Tribunal's finding that the land was used for business purposes was a finding of fact. The exemption applied because the land and building were used in the assessee's business.

Conclusion: The cotton press properties were exempt from additional wealth-tax.

Final Conclusion: The reference was answered in favour of the assessee and against the Revenue, holding that the disputed lands and business properties fell within the exemption from additional wealth-tax.

Ratio Decidendi: Agricultural activity carried on with a profit motive can constitute business, and land or building used for that business is exempt from additional wealth-tax even if the land is agricultural and lies within eight kilometres of municipal limits.

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