COMMISSIONER OF INCOME-TAX, ASSAM ETC. vs THE PANBARI TEA CO. LTD.

The Supreme Court ruled that the annual instalment paid as premium under the Indian Income-tax Act, 1922, is to be classified as capital gains rather than revenue receipts. The Court distinguished between 'premium' as a capital income and 'rent' as a revenue receipt, emphasizing that the substance of the transaction, rather than its form, determines its classification. The Court upheld the High Court's decision that the premium, despite being paid in instalments, was not camouflaged rent, thus affirming the distinction made by the parties in their lease agreement.