https://www.taxtmi.com/caselaws?id=177600 A lump sum paid at the inception of a building lease is prima facie a capital receipt when it represents consideration for parting with the landlord's rights or for acquiring the leasehold interest. It becomes taxable as income only if the surrounding facts show that it is really rent paid in advance. The character of the payment depends on whether it was made before the tenancy came into existence and whether the transaction indicates a capital transfer rather than a periodic return. On the stated lease terms, the single non-recurring payment was received before the tenancy was created for letting the tenant into possession and granting the lease, so it was treated as capital and not taxable. en-us Tue, 10 Apr 1962 00:00:00 +0530 Tue, 19 Jan 2016 12:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177600 A lump sum paid at the inception of a building lease is prima facie a capital receipt when it represents consideration for parting with the landlord's rights or for acquiring the leasehold interest. It becomes taxable as income only if the surrounding facts show that it is really rent paid in advance. The character of the payment depends on whether it was made before the tenancy came into existence and whether the transaction indicates a capital transfer rather than a periodic return. On the stated lease terms, the single non-recurring payment was received before the tenancy was created for letting the tenant into possession and granting the lease, so it was treated as capital and not taxable. Case-Laws Income Tax Tue, 10 Apr 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177600