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Issues:
1. Whether agriculture itself is considered a business for wealth-tax purposes? 2. Whether the assessee is liable to pay additional wealth-tax? Analysis: The case involves a respondent who is an assessee to wealth-tax and owns 32 acres of land, with 26 acres covered by rubber plantations and the remaining 6 acres with trees like mango and coconut. The issue revolves around the levy of additional wealth-tax on these lands following their inclusion in the urban area. The respondent contended that agriculture itself is a business and, therefore, not liable for wealth-tax on these assets. The Appellate Tribunal relied on previous judgments, including one by the Punjab and Haryana High Court, to support the view that running a rubber estate constitutes a business, entitling the assessee to exemption from additional wealth-tax. The primary question before the court was whether the agricultural land and building in the urban area would be considered "business premises" for wealth-tax purposes. The court referred to various precedents, including a Supreme Court decision, to interpret the term "business." The court highlighted that the term "business" is not defined in the Wealth-tax Act, emphasizing the need to understand the word in a general sense. The court cited dictionary meanings and legal observations to elaborate on the broad interpretation of the term "business" in different contexts. Referring to the decision of the Punjab and Haryana High Court in a similar case, the court agreed that agricultural operations involving systematic entrepreneurial activity with the aim of earning profits constitute a business. The court also noted that the element of risk in such operations further supports categorizing agricultural activities as business. Based on these considerations and in alignment with previous judgments, the court concluded that running a rubber estate qualifies as a business, entitling the assessee to exemption from additional wealth-tax. In conclusion, the court answered the referred questions affirmatively in favor of the assessee, stating that the running of the rubber estate is indeed a business and the assessee is not liable to pay additional wealth-tax. The judgment was delivered by the court, and a copy was directed to be sent to the Income-tax Appellate Tribunal, Cochin Bench for further action.
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