Agricultural use of urban land qualifies as business premises, securing exemption from additional wealth-tax under the Schedule.

Urban land used for agricultural operations was treated as "business premises" under rule 1(i), Paragraph B, Part I of the Schedule to the Wealth-tax Act, 1957, because binding precedent had already held that such use brings the land within that expression. On that settled interpretation, the land qualified for exemption from additional wealth-tax under Paragraph A(2). The court therefore applied the existing line of authority and held that the assessee's agricultural lands were exempt as business premises for wealth-tax purposes.

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Issues: Whether urban land on which agricultural operations are carried on falls within the expression "business premises" under the Schedule to the Wealth-tax Act, 1957, so as to qualify for exemption from additional wealth-tax on urban assets.

Analysis: The issue was governed by binding precedent which had already held that urban land used for agricultural operations answers the description of "business premises" under rule 1(i), Paragraph B, Part I, of the Schedule to the Wealth-tax Act, 1957, and therefore qualifies for exemption from additional wealth-tax under Paragraph A(2). The same view had been reiterated in later decisions consistently applying that interpretation.

Conclusion: The assessee's agricultural lands were covered by the expression "business premises" and were entitled to exemption from additional wealth-tax.

Ratio Decidendi: Urban land on which agricultural operations are carried on constitutes "business premises" for purposes of the Wealth-tax Act, 1957 Schedule provisions governing exemption from additional wealth-tax.

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