THE MEMBER FOR THE BOARD OF AGRICULTURAL INCOME TAX, ASSAM vs SMT. SINDHURANI CHAUDHURANI.(with connected appeals)

The Supreme Court held that payments termed 'salami' are capital receipts and not agricultural income under Section 2(a)(1) of the Assam Agricultural Income-Tax Act (Assam IX of 1939). The court established that salami is characterized by its non-recurring nature and payment prior to tenancy creation, thus cannot be classified as rent or revenue. The appeals were dismissed, affirming that the salami payments received by zamindar assessees were not subject to agricultural income tax.