https://www.taxtmi.com/caselaws?id=38572 A commercial instrument described as a lease deed must be construed by its true legal effect, not by labels or isolated clauses. On the terms described, a 99-year demise of an entire industrial undertaking, with ownership and reversion remaining in the lessor, a right of re-entry on default, and clauses on renewal, deterioration and acquisition during the term, was consistent with a long-term lease and not with a hire-purchase or instalment sale. The absence of a lump sum premium did not justify treating part of the annual payment as capital consideration. The annual payment was therefore rent under the lease, and there was no basis for splitting it into capital and revenue components. en-us Mon, 03 Sep 1973 00:00:00 +0530 Wed, 07 Apr 2010 13:01:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38572 A commercial instrument described as a lease deed must be construed by its true legal effect, not by labels or isolated clauses. On the terms described, a 99-year demise of an entire industrial undertaking, with ownership and reversion remaining in the lessor, a right of re-entry on default, and clauses on renewal, deterioration and acquisition during the term, was consistent with a long-term lease and not with a hire-purchase or instalment sale. The absence of a lump sum premium did not justify treating part of the annual payment as capital consideration. The annual payment was therefore rent under the lease, and there was no basis for splitting it into capital and revenue components. Case-Laws Income Tax Mon, 03 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38572