https://www.taxtmi.com/caselaws?id=191496 A premium paid under a lease is characterised by its true substance, not by the label used in the deed. Where the deed separately provides for rent and for a premium payable in instalments, the premium remains the price for parting with rights in the property and has the character of capital, while rent is consideration for use and enjoyment. The instalment structure does not by itself convert the premium into deferred rent. On these facts, the amount was held to be a capital receipt and not revenue income liable to tax. en-us Tue, 22 Mar 1960 00:00:00 +0530 Wed, 05 Apr 2017 18:31:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191496 A premium paid under a lease is characterised by its true substance, not by the label used in the deed. Where the deed separately provides for rent and for a premium payable in instalments, the premium remains the price for parting with rights in the property and has the character of capital, while rent is consideration for use and enjoyment. The instalment structure does not by itself convert the premium into deferred rent. On these facts, the amount was held to be a capital receipt and not revenue income liable to tax. Case-Laws Income Tax Tue, 22 Mar 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191496