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Issues:
1. Additional wealth-tax liability under the Wealth-tax Act, 1957 for the property under construction. 2. Interpretation of the term 'business premises' under the Act. 3. Claim of exemption from additional wealth-tax liability based on the property being treated as business premises. 4. Whether the entire building under construction can be considered as business premises. 5. Alternative contention regarding exemption for the portion actually used for business. 6. Consideration of liabilities deduction under rule 2 of the Act. Analysis: The judgment addresses the issue of additional wealth-tax liability under the Wealth-tax Act, 1957 concerning a property under construction. The assessee contended that the property should be treated as business premises to avoid the additional wealth-tax levy. The relevant provision defines 'business premises' as a place used for business or profession. The assessee argued that the entire multi-storey building, being the stock-in-trade, should be considered business premises. However, the tribunal disagreed, stating that only the portion actually used for business could be exempt from additional wealth-tax. The tribunal clarified that the concept of 'business premises' refers to the place where the business is conducted. In this case, the partnership firm exploits land by constructing flats, but not the entire building can be deemed business premises. The tribunal emphasized that the expression 'business premises' must be interpreted rationally, considering it as the location where the business is carried out. Therefore, the entire building cannot be considered business premises for the purpose of exemption from additional wealth-tax. The tribunal further considered the possibility of exempting the portion of the building actually used for business from additional wealth-tax liability. It directed the Wealth Tax Officer (WTO) to identify and earmark the specific portion used for business, which would then be exempt from additional wealth-tax. Additionally, the tribunal instructed the WTO to examine any liabilities that could be deducted under rule 2 of the Act, remitting the matter for further assessment. In conclusion, the tribunal rejected the assessee's claim that the entire building under construction could be treated as business premises for exemption from additional wealth-tax. Instead, it directed the identification of the portion actually used for business to determine the exemption eligibility. The judgment provides a detailed analysis of the interpretation of 'business premises' and the application of relevant provisions under the Wealth-tax Act, 1957.
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