https://www.taxtmi.com/caselaws?id=6268 Lease premium described as salami is ordinarily a capital receipt where it secures a leasehold benefit, while recurring payments for use under the lease are revenue receipts. The form used by the parties is not conclusive; the revenue must establish from the facts that an amount labelled salami is ively income. On the material available, a comparison between an earlier short-term prospecting lease and a later long-term mining lease did not prove that the premium was a disguised advance royalty. The amount received on grant of the lease was therefore treated as capital receipt and not assessable as income. en-us Thu, 05 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6268 Lease premium described as salami is ordinarily a capital receipt where it secures a leasehold benefit, while recurring payments for use under the lease are revenue receipts. The form used by the parties is not conclusive; the revenue must establish from the facts that an amount labelled salami is ively income. On the material available, a comparison between an earlier short-term prospecting lease and a later long-term mining lease did not prove that the premium was a disguised advance royalty. The amount received on grant of the lease was therefore treated as capital receipt and not assessable as income. Case-Laws Income Tax Thu, 05 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6268