https://www.taxtmi.com/caselaws?id=276857 Receipts under a land sale and oil-sharing arrangement were treated as capital consideration, not taxable income. The Privy Council viewed the transaction as a sale of the taxpayer's right, title and interest in the land, with the reserved share of oil or its monetary equivalent forming part of the purchase price rather than profit from a business, lease, or royalty in the ordinary sense. Payment measured by a percentage of future oil production did not change the essential capital character of the receipt. The assessment therefore could not stand, because the amount was not income or annual profit or gain within the Act. en-us Thu, 27 Jul 1933 00:00:00 +0530 Mon, 19 Nov 2018 16:17:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276857 Receipts under a land sale and oil-sharing arrangement were treated as capital consideration, not taxable income. The Privy Council viewed the transaction as a sale of the taxpayer's right, title and interest in the land, with the reserved share of oil or its monetary equivalent forming part of the purchase price rather than profit from a business, lease, or royalty in the ordinary sense. Payment measured by a percentage of future oil production did not change the essential capital character of the receipt. The assessment therefore could not stand, because the amount was not income or annual profit or gain within the Act. Case-Laws Income Tax Thu, 27 Jul 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276857