https://www.taxtmi.com/caselaws?id=277035 Premiums received under short-term bauxite prospecting licences were held to be income, not capital receipts. The character of the sums depended on the substance of the transactions: the licences granted only a limited right to prospect, conferred no possession or estate in land, were for short periods, and required the licensees to minimise damage and restore the land. As the payments were not consideration for transfer of a capital asset, but were in substance advance payments for the privilege of prospecting, the HC upheld the finding that the receipts were taxable income. en-us Tue, 25 Jan 1955 00:00:00 +0530 Thu, 22 Nov 2018 15:41:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277035 Premiums received under short-term bauxite prospecting licences were held to be income, not capital receipts. The character of the sums depended on the substance of the transactions: the licences granted only a limited right to prospect, conferred no possession or estate in land, were for short periods, and required the licensees to minimise damage and restore the land. As the payments were not consideration for transfer of a capital asset, but were in substance advance payments for the privilege of prospecting, the HC upheld the finding that the receipts were taxable income. Case-Laws Income Tax Tue, 25 Jan 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277035