https://www.taxtmi.com/caselaws?id=200562 A life annuity received under a property transfer is taxable where its substance is a recurring income stream rather than capital consideration, even if it is described as part of the sale price or payable for life. The decisive test is the real character of the transaction, not its form. The arrangement was also held not to produce agricultural income, because the payment was not shown to depend on agricultural produce or income and the collateral charge operated only as security. A family arrangement did not alter the tax character of the receipt, so the claimed exemption was unavailable. en-us Tue, 17 Apr 1934 00:00:00 +0530 Wed, 04 Apr 2018 16:38:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200562 A life annuity received under a property transfer is taxable where its substance is a recurring income stream rather than capital consideration, even if it is described as part of the sale price or payable for life. The decisive test is the real character of the transaction, not its form. The arrangement was also held not to produce agricultural income, because the payment was not shown to depend on agricultural produce or income and the collateral charge operated only as security. A family arrangement did not alter the tax character of the receipt, so the claimed exemption was unavailable. Case-Laws Income Tax Tue, 17 Apr 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200562