https://www.taxtmi.com/caselaws?id=173280 Tax liability depended on the true legal character of the instrument, not the labels the parties used. On proper construction of the bond and accompanying letter, the monthly sums advanced to Mr. Hart were loans secured on a capital sum payable at death, with no personal liability to repay during lifetime, rather than annuities or annual payments. The society's underlying obligation remained a capital obligation, reduced only by loans actually advanced. The fact that the lender and obligor were the same entity did not alter the analysis. The sums were therefore not chargeable to income tax as annuities or annual payments. en-us Fri, 19 Mar 1948 00:00:00 +0530 Fri, 11 Sep 2015 14:29:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173280 Tax liability depended on the true legal character of the instrument, not the labels the parties used. On proper construction of the bond and accompanying letter, the monthly sums advanced to Mr. Hart were loans secured on a capital sum payable at death, with no personal liability to repay during lifetime, rather than annuities or annual payments. The society's underlying obligation remained a capital obligation, reduced only by loans actually advanced. The fact that the lender and obligor were the same entity did not alter the analysis. The sums were therefore not chargeable to income tax as annuities or annual payments. Case-Laws Income Tax Fri, 19 Mar 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173280