https://www.taxtmi.com/caselaws?id=55399 A lump-sum lease payment characterised as premium rather than advance rent is capital expenditure and cannot be deducted annually. The majority treated the payment as consideration for obtaining a long-term lease because it was described in the lease deed as premium, paid before lease execution, and secured an enduring advantage. Applying the principle that transaction substance prevails over nomenclature, the payment was not periodic rent paid in advance; the deduction claim was therefore disallowed. A dissenting view treated the amount as advance rent allocable across the lease term and deductible annually. en-us Sat, 16 May 1981 00:00:00 +0530 Fri, 26 Nov 2010 18:11:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55399 A lump-sum lease payment characterised as premium rather than advance rent is capital expenditure and cannot be deducted annually. The majority treated the payment as consideration for obtaining a long-term lease because it was described in the lease deed as premium, paid before lease execution, and secured an enduring advantage. Applying the principle that transaction substance prevails over nomenclature, the payment was not periodic rent paid in advance; the deduction claim was therefore disallowed. A dissenting view treated the amount as advance rent allocable across the lease term and deductible annually. Case-Laws Income Tax Sat, 16 May 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55399