https://www.taxtmi.com/caselaws?id=26975 An annuity paid under a resumption scheme for jagir lands was treated as compensation for extinction of rights in a capital asset, so its character depended on the true nature of the receipt and not on the form or periodicity of payment. The High Court held that payment by annuity in perpetuity, or computation by reference to annual yield, does not convert capital compensation into taxable income where the receipt is a substitute for the resumed property. The annuity was therefore a capital receipt and not liable to tax as revenue income. en-us Fri, 19 Jul 1985 00:00:00 +0530 Tue, 09 Feb 2010 17:59:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26975 An annuity paid under a resumption scheme for jagir lands was treated as compensation for extinction of rights in a capital asset, so its character depended on the true nature of the receipt and not on the form or periodicity of payment. The High Court held that payment by annuity in perpetuity, or computation by reference to annual yield, does not convert capital compensation into taxable income where the receipt is a substitute for the resumed property. The annuity was therefore a capital receipt and not liable to tax as revenue income. Case-Laws Income Tax Fri, 19 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26975