https://www.taxtmi.com/caselaws?id=168531 Periodical royalties under long-term coal mining leases were treated as income rather than capital because they were recurring payments for the continuing enjoyment of leasehold mineral rights, not instalments of the purchase price of the coal. A lump-sum salami or premium was characterised as capital, since it was paid once for acquisition of the leasehold rights. The Act was read broadly so that minimum royalty and tonnage royalty fell within income from other sources, and the wasting nature of the mines did not alter their tax character or justify converting income into capital. en-us Thu, 13 May 1943 00:00:00 +0630 Fri, 12 Aug 2022 10:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168531 Periodical royalties under long-term coal mining leases were treated as income rather than capital because they were recurring payments for the continuing enjoyment of leasehold mineral rights, not instalments of the purchase price of the coal. A lump-sum salami or premium was characterised as capital, since it was paid once for acquisition of the leasehold rights. The Act was read broadly so that minimum royalty and tonnage royalty fell within income from other sources, and the wasting nature of the mines did not alter their tax character or justify converting income into capital. Case-Laws Income Tax Thu, 13 May 1943 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=168531