HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Member for the Board of Agricultural Income-tax, Assam v. Smt. Sindhurani Chaudhurani and connected appeals
Civil Appeal 162 of 1955 and Civil Appeals 38–44 of 1956
[1957] SCR 1019 ·
Assam Agricultural Income-tax Act 1939, section 2(a)(i)
Sources & disclosures includedDownload original judgment / order
3-judge bench · N. H. Bhagwati · T. L. Venkatarama Ayyar · J. L. Kapur
Assessment years: 1941–42 in Civil Appeal 162 of 1955; connected estate assessments
01 · Facts of the case
Zamindars received salami before granting agricultural holdings. Rates varied with land quality and payments recurred only on fresh settlements, including reletting after auction purchase. Calcutta and Assam High Courts had reached opposing tax results.
Source: Primary report: SCR 1020–1024
02 · Discussion by the Hon’ble Court
The actual receipts were single non-recurring payments preceding tenancy, purchasing an interest in land rather than rent. Repeated settlements of different holdings did not convert each capital premium into periodic income. Tenures had practical stability; payments were not asserted to be capitalised rent.
Source: Primary report: SCR 1025–1031
03 · Judicial decision
Revenue appeal 162 dismissed with costs; assessees’ appeals 38–44 allowed, Assam judgment set aside and references answered negatively. Appeal 42 carried own costs because its appellant was not served and absent.
Source: Primary report: SCR 1031–1032
04 · Outcome / in whose favour
Assessees succeeded: these salami receipts were capital and outside the agricultural-income definition applied.
Source: Primary report: SCR 1031–1032
05 · AKHB REVIEW POINT
Examine what the premium actually purchases, when paid and tenancy conditions. The name salami alone is not decisive; distinguish advance rent, renewal fees and other payments after tenancy exists. No blanket modern capital-gains exemption follows.
Source: Primary report: SCR 1024–1031
Source & verification
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Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
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