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PETITIONER: THE MEMBER FOR THE BOARD OF AGRICULTURAL INCOME TAX, ASSAM
Vs.
RESPONDENT: SMT. SINDHURANI CHAUDHURANI.(with connected appeals)
DATE OF JUDGMENT: 24/04/1957
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. BHAGWATI, NATWARLAL H. AIYYAR, T.L. VENKATARAMA
CITATION: 1957 AIR 729 1957 SCR 1019
ACT: Salami--Indicia-If capital receipt-Liability to agricultural income-tax-Assam Agricultural Income-tax Act (Assam IX of 1939), s. 2(a) (1).
HEADNOTE: The true indicia of salami are (1) its single non-recurring character and (2) payment prior to the creation of the tenancy. It is the consideration paid by the tenant for being let into possession and can be neither rent nor revenue but is a capital receipt in the hands of the landlord. Kamakshya Narain Singh v. The Commissioner of Income Tax (1943) L.R. 70 I.A. 180, relied on. Case-law reviewed. Birendra Kishore Manikya v. Secretary of State for India, (1920) I.L.R. 48 Cal. 766, Meher Bano Khanum v. Secretary of State for India, (1925) I.L.R. 53 Cal. 34, Raja Rajendra Narayan Bhanja Deo v. Commissioner of Income Tax, (1929) I.L.R. 9 Pat. 1 and Commissioner of Income Tax v. K. C. Manavikramato Rajah, I.L.R. 1945 Mad. 837, distinguished. Consequently, where payments described as salamis and received by certain zamindar assessees as consideration for granting agricultural leases, by no means of a ...