Business premises exclusion applies to agricultural land used for systematic profit-oriented operations under the wealth-tax urban asset rules.

Agricultural land used throughout the relevant year for systematic, profit-oriented agricultural operations with capital, labour and risk was treated as land used for business purposes. On that basis, such land fell within the description of business premises under Rule 1(i) of the Schedule to the Wealth-tax Act, 1957 and was excluded from additional wealth-tax on urban assets.

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Issues: Whether agricultural land used by the assessee for agricultural operations and situated in an urban area qualified as "business premises" within Rule 1(i), Paragraph B of the Schedule to the Wealth-tax Act, 1957 and was therefore excluded from additional wealth-tax on urban assets.

Analysis: The exclusion in Paragraph A(2) of Part I of the Schedule applies to building or land used throughout the previous year for the purposes of business or profession. The expression "business" is of wide import and, in taxing statutes, may include occupation or profession carried on with a profit motive. Agricultural operations conducted systematically with the aid of capital and labour, with the object of earning profits and involving an element of risk, fall within that concept. Land so used is accordingly land used for business purposes and answers the description of business premises under Rule 1(i).

Conclusion: The agricultural land was held to be business premises and was exempt from the additional wealth-tax on urban assets, in favour of the assessee.

Ratio Decidendi: Land used throughout the relevant year for systematic profit-oriented activity involving capital, labour, and risk qualifies as business premises for purposes of the wealth-tax urban asset exclusion.

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