The existing exemptions from payment of land revenue or non-agricultural assessment on land situate within the sites of villages and the limits of towns and cities shall be continued,—
(i) if such lands, being other than lands used for purposes of agriculture, have been held wholly or partially exempt from payment of land revenue or non-agricultural assessment under any law, or order of competent authority, or any contract or grant from the State Government, prior to the commencement of this Act;
(ii) if such lands, being ordinarily used for the purposes of agriculture, have been held exempt from payment of land revenue or non-agricultural assessment prior to the commencement of this Act, having been excepted from survey settlement, introduced before this ct on the ground of such lands being ‗hittals‘ attached to buildings or of its being deemed inexpedient to apply a survey settlement to them.