https://www.taxtmi.com/caselaws?id=49317 Under a lease deed that separately provides for premium and rent, an instalment described as premium is capital in nature when it represents the price for parting with the lessor's interest and conferring the leasehold right. Rent remains a recurring payment for continued enjoyment of the property and is revenue in nature. The character of the premium is not changed merely because it is payable in instalments or because the deed contains a default clause. Read as a whole, the document and surrounding circumstances supported the contractual description, and the premium was treated as a capital receipt rather than disguised rent, in favour of the assessee. en-us Mon, 19 Apr 1965 00:00:00 +0530 Mon, 21 Nov 2022 15:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49317 Under a lease deed that separately provides for premium and rent, an instalment described as premium is capital in nature when it represents the price for parting with the lessor's interest and conferring the leasehold right. Rent remains a recurring payment for continued enjoyment of the property and is revenue in nature. The character of the premium is not changed merely because it is payable in instalments or because the deed contains a default clause. Read as a whole, the document and surrounding circumstances supported the contractual description, and the premium was treated as a capital receipt rather than disguised rent, in favour of the assessee. Case-Laws Income Tax Mon, 19 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49317