https://www.taxtmi.com/caselaws?id=49535 Whether payments received under prospecting licences for bauxite are revenue or capital was analysed by focusing on the legal nature of the licence rights. The instruments conferred exclusive rights to enter, prospect, remove specified mineral samples and included an option to obtain a long-term mining lease; the Court treated the covenants as effecting appropriation or transfer of a portion of the capital asset rather than mere temporary use. Consequently the sums bore the characteristics of capital receipts and were not taxable as income in the hands of the licensee. en-us Wed, 30 Nov 1960 00:00:00 +0530 Mon, 01 Sep 2014 12:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49535 Whether payments received under prospecting licences for bauxite are revenue or capital was analysed by focusing on the legal nature of the licence rights. The instruments conferred exclusive rights to enter, prospect, remove specified mineral samples and included an option to obtain a long-term mining lease; the Court treated the covenants as effecting appropriation or transfer of a portion of the capital asset rather than mere temporary use. Consequently the sums bore the characteristics of capital receipts and were not taxable as income in the hands of the licensee. Case-Laws Income Tax Wed, 30 Nov 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49535