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Issues:
1. Whether the land sold should be treated as a business asset and exempt from wealth-tax. 2. Whether the land, although not used for storage of explosives on the valuation date, should be treated as exempt if capable of being used as a business asset. Analysis: 1. The case involved an appeal by the Revenue under section 27A of the Wealth-tax Act, 1957 against the order of the Income-tax Appellate Tribunal. The dispute centered around whether the land sold by the assessee, a company engaged in the manufacture and sale of fire works, should be considered a business asset exempt from wealth-tax. The Revenue contended that the land was not used for business purposes and should be taxed. The Assessing Officer included the land's value in the net wealth of the assessee based on various factors, including the possession transfer to a builder. However, the Commissioner of Wealth-tax (Appeals) and the Tribunal ruled in favor of the assessee, stating that the land was used for business and the possession transfer occurred after the valuation date. 2. The second issue revolved around whether the land, not actively used for storage of explosives on the valuation date, could still be considered exempt if capable of being used as a business asset. The Revenue argued that since the explosives license was surrendered for one magazine and renewed for two magazines, the land was not used for business for over six months. They also highlighted the memorandum of understanding for the land sale and the possession transfer date. However, the court found that the land was indeed used for business purposes, evidenced by the renewal of two explosives licenses, and the possession transfer to the builder occurred after the valuation date. The court emphasized that the relevant date for wealth-tax assessment was the valuation date, and the lower authorities' findings were based on valid evidence. In conclusion, the court dismissed the appeal by the Revenue, stating that no substantial questions of law arose for consideration. The judgment upheld the decisions of the lower authorities, confirming that the land was used for business purposes and the possession transfer occurred post the valuation date, thus exempting it from wealth-tax.
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