Summarize the following court judgment. ppeal No. 150 of 1964. Appeal from the judgment and order dated March 22	 1960	 of the Assam High Court in Income tax Reference No. 7 of 1959. N.D. Karkhanis and R.N. Sachthey	 for the appellant. Sampat Ayyangar and J.P. Goyal	 for the respondent. The Judgment of the Court was delivered by Subba Rao	 J. By a registered lease deed dated March 31	 1950	 the assessee company	 respondent herein	 leased out two tea estates named "Panbari Tea Estate" and "Barchola Tea Estate"	 along with machinery and buildings owned and held by it	 in Darrang	 in the State of Assam	 to a firm named Messrs. Hiralal Ramdas for a period of ten years commencing from January 1	 1950. The lease was executed in consideration of a sum of Rs. 2	25	000/as and by way of premium and an annual rent of Rs. 54	000/ to be paid by the lessee to the lessor. The premium was made payable as follows: Rs. 45	000/ to be paid in one lump sum at the time of the execution of the lease deed ' and the balance of Rs. 1	80	000/in 16 half yearly instalments of Rs. 11	250/ on or before January 31 and July 31 of each year. The annual rent of Rs. 54	000/ was payable as follows: Rs. 1	000/ per month to be paid on or before the last day of each month	 making in all Rs. 12	000/ per year	 and the balance of Rs. 42	000/ on or before December 31 of each year. On February 25	 1957	 for the assessment year 1952 53	 the Income tax Officer made the assessment treating the instalment of Rs. 11	250/ paid towards the premium in the relevant accounting year as a revenue receipt of the assessee. On appeal	 the Appellate Assistant Commissioner confirmed the order of the Income tax Officer. On further appeal	 the Income tax Appellate Tribunal also held that the premium was really the rent payable under the lease deed and	 therefore	 it was chargeable to income tax. At the instance of the assessee	 the Tribunal referred the following question to the High Court under section 66(1) of the Income tax Act	 1922	 herein after called the Act: "Whether on the facts and in the circumstances of the case and upon the construction of the terms of the lease	 dated 31st March 1950	 the sum of Rs. 11	250/ received by the assessee during the year of account is revenue or capital receipt". 813 The High Court held that the said sum of Rs. 11	250/ received by the assessee during the year of account was a capital receipt and answered the question accordingly. On a certificate issued by the High Court	 this appeal has been filed by the Revenue in his Court. The short question that arises in this appeal is whether the amount described as premium in the lease deed is really rent and	 therefore	 a revenue receipt. Before we look at the lease deed it will be convenient to notice briefly the law pertaining to the concept of premium	 which is also described as salami. The distinction between premium and rent was brought out by the Judicial Committee in Raja Bahadur Kamakshya Narain Singh of Ramgarh vs Commissioner of Income tax	 Bihar & Orissa (1) thus: "It (salami) is a single payment made for the acquisition of the right of the lessee to enjoy the benefits granted to them by the lease. That general right may properly be regarded as a capital asset	 and the money paid to purchase it may properly be held to be a payment on capital account. But the royalties are ' on a different footing It is true that in that case the leases were granted for 999 years; but	 though it was one of the circumstances	 it was not a decisive factor 	in the Judicial Committee coming to the conclusion that the salami paid under the leases was a capital asset. This Court in Member for the Board of Agriculture Income tax	 Assam vs Sindhurani Chaudhurani (2) defined "salami" as follows: "The 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. " It is true that in that case the payment was paid in a single lump sum	 but that was not a conclusive test	 for salami can be paid in a single payment or by instalments. The real test is whether the said amount paid in a lump sum or in instalments is the consideration paid by the tenant for being let into possession. This Court again in Chintamani Saran Nath Sah Deo vs Commissioner of Income tax	 Bihar & Orissa(1) considered all the relevant decisions on the subject in the context of licences granted to the assessee to (1) 	 519. (2) 814 prospect for bauxite in some cases for 6 months and in others for a year or two and observed: "The definition of salami was a general one	 in that it was a consideration paid by a tenant for being let into possession for the purpose of creating a new tenancy. " Applying that test this Court held in that case that under the said licences there was a grant of a right to a portion of the capital of the licensor in the shape of a general right to the capital asset. In view of these three decisions it is not necessary to multiply citations. Under section 105 of the Transfer of Property Act	 a lease of immovable property is a transfer of a right to enjoy the property made for a certain time	 express or implied or in perpetuity	 in consideration of a price paid or promised	 or of money	 a share of crops	 service or any other thing of value	 to be rendered periodically or on specified occasions to the transferor by the transferee	 who accepts the transfer on such terms. The transferor is called the lessor	 the transferee is called the lessee	 the price is called the premium	 and the money	 share service or other thing to be so rendered is called the rent. The section	 therefore	 brings out the distinction between a price paid for a transfer of a right to enjoy the property and the rent to be paid periodically to the lessor. When the interest of the lessor is parted with for a price	 the price paid is premium or salami. But the periodical payments made for the continuous enjoyment of the benefits under the lease are in the nature of rent. The former is a capital income and the latter a revenue receipt. There may be circumstances where the parties may camouflage the real nature of transaction by using clever phraseology. In some cases	 the so called premium is in fact advance rent and in others rent is deferred price. It is not the form but the substance of the transaction that matters. The nomenclature used may not be decisive or conclusive but it helps the Court	 having regard to the other circumstances	 to ascertain the intention of the parties. Bearing the said principles in mind let us scrutinize the lease deed dated March 31	 1950. Under that document interest in two large tea estates comprising 320 acres and 305 acres respectively under tea	 along with the bungalows	 factory buildings	 houses	 godowns	 cooly lines and other erections and structures	 was parted by the lessor to the lessee for a period of 10 years; and during that period the lessee could enjoy the said tea estates in the manner prescribed in the document. Under the document	 therefore	 there was a transfer of substantive interest of the lessor in the estates to the lessee and a conferment of a right on the lessee to use the said estates by exploiting the same. Under cl. 4 of the lease deed for the transfer of the right a premium of Rs. 2	25	000/ had to be 815 paid to the lessor and for using the estates the lessee had to pay. an annual rent of Rs. 54	000/ . Both the premium and the rent were payable in instalments in the manner provided in the document. The parties were businessmen presumably well versed in the working of tea estates. They must be assumed to have known the difference between the two expressions "premium" and "rent"; and they had designedly used those two expressions to connote two different payments. The annual rent fixed was a considerable sum of Rs. 54	000/ and the premium	 when spread over 10 years	 would work out to Rs. 22	500/ a year. There is no reason	 therefore	 to assume that the parties camouflaged their real intention and fixed a part of the rent in the shape of premium. The mere fact that the premium was made payable in instalments cannot obviously be decisive of the question	 for that might have been to accommodate the lessee. Nor is cl. 8 of the lease deed	 on which strong reliance is placed by the learned counsel for the Revenue	 a pointer to the contrary. It reads: "(1) If any of the aforesaid instalments towards the premium or annual rent shall remain unpaid for two months after becoming payable (whether formally demanded or not) or if the lessee shall make default in payment to the Lessor any other sum or any part thereof in due dates or in observing or performing any of the covenants	 conditions or stipulations hereinbefore contained and on the part of the Lessee to be paid	 observed and performed or if the Lessee 's firm is dissolved except for reconstruction or if any of the partners of the Lessee is adjudicated insolvent then and in any such cases it shall be lawful for the Lessor immediately or at any time or times thereafter upon the demised Tea EStates and premises or any part thereof in the name of the whole to re enter and thereupon this demise shall absolutely determine but without prejudice to the rights of the Lessor to damages or compensation in respect of any breach of Lessee covenants herein contained and all other rights and remedies including the right to recover the balance of the instalment unpaid premium or rent payable in that particular year. " The argument is that in the case of default contemplated in this clause it shall be lawful for the lessor to re enter and in that event in terms of cl. 8 he will be entitled only to recover the balance of the instalment of unpaid premium and not the entire balance of the premium. This construction	 though it appears to be plausible at first sight	 really ignores the main terms of the lease. The default clause is pressed into service to destroy the main term of the lease. Under el. 1 of the lease deed the sum of Rs. 2	25	000/ is the consideration by way of premium to be paid by the lessee to the lessor. Under cl. 4 thereof the said entire premium has to be 816 paid in instalments; under cl. 8 the lessor has the option to terminate the lease and re enter the premises in the circumstances mentioned therein without prejudice to all his rights under the document. One of his rights is to recover the premium in instalments. The fact that one of the rights saved is his right to recover the balance of the instalment of unpaid premium cannot possibly deprive him of all his _other rights which are also expressly saved thereunder. The drafting of the clause is not artistic and is rather confused; but in the context of the other clauses it cannot be so construed as to override. or come into conflict with	 the main terms of the lease deed. Thirdly	 it was contended that the income the lessor was getting under the lease after 1950	 i.e.	 after the execution of the lease deed	 viz.	 the total of the instalments of premium and rent	 was not higher than the profits he was getting before the lease and that was an indication that what was rent really was split up into premium and rent for ulterior purposes. This argument is based upon the following data collected from the published accounts of the assessee company: Year ended Profit Deprecia Net Divided tion Profit (tax free) (1) (2) (3) (4) (5) Rs. Rs. Rs. % 31st March 1947 . 60	186 8	665 51	521 9 31st March 1948 . 33	118 7	872 23	246 9 31st March 1949 . 31	581 7	475 24	106 6 31st March 1950 . 47	734 17	868 29	866 12 31st March 1951 . 71	888 17	726 54	162 6 31st March 1952 . 33	213 15	527 17	686 6 31st March 1953 . 69	550 15	410 54	140 6 In the accounts of the year to 31st March 1952 there are the following three items of expenditure: Rs. Transit charges . . 10	605 Legal Expenses . . 7	518 Gratuity to Managing Director . 10	000 28	123 Before comparing the figures given for the two periods	 i.e.	 the period before March 1950 and the period thereafter	 it is necessary to add back the said three items of expenditure totalling 817 Rs. 28	123/ to the net profit of the year ended with 31st March	 1952; if they were added	 instead of Rs. 17	585/ 	 the profit would be Rs. 45	809/ . A comparative study of the said figures discloses a higher return in the second period than during the earlier period. But an attempt is made to show that the figures of the later period include other items and if they are deducted the net profit would be comparable with that in the earlier period	 but there is no agreed data for this attempt and it is not possible on the material placed before us to scrutinize the figures. In the absence of the relevant material it is not possible to accept the argument built upon the said figures. The result is that there is no material placed before us	 either direct or circumstantial	 to displace the description given in the lease deed to the said amounts as premium and to hold that they are not in fact premium but only rent. Indeed	 the circumstances mentioned supra confirm the said description. In the result we hold that the High Court has given a correct answer to the question submitted to it by the Income tax Appellate Tribunal. The appeal is dismissed with costs. Appeal dismissed.

The assessee leased out its tea estates for a period of ten years in consideration of a sum as and by way of premium and an annual rent to be paid by the lessor to the assessee. As premium a part the sum was paid at the time of the execution of the lease and the balance was spread over in ten annual instalments; and the annual rent was payable in monthly instalments. The annual instalment paid as premium was taxed by the Income Tax authorities as revenue receipt of the assessee. On reference	 the High Court held to be capital gains. In appeal by certificate. HELD: The annual instalment paid as premium was capital gains. When the interest of the lessor is parted for a price the price paid is premium or salami. But the periodical payments made for the continuous enjoyment of the benefits under the lease are in the nature of rent. The former is a capital income and the latter a revenue receipt. There may be circumstances where the parties may camouflage the real nature of the transaction by using clever phraseology. In some cases	 the so called premium is in fact advance rent and in others rent is a deferred price. It is not the form but the substance of the transaction that matters. The nomenclature used may not be decisive or conclusive but it helps the court	 having regard to the other circumstances	 to ascertain the intention of the parties. Premium can be paid in a single payment or by instalments. The real test is whether the said amount paid in a lump sum or in instalments is the consideration paid by the tenant for being let into possession. [813 H; 814 E G] Raja Bahadar Kamakshya Narain Singh of Ramgarb vs Commissioner of Income tax	 Bihar and Orissa	 	 Member for the Board of Agriculture Income tax Assam vs Sindhurani Chaudhurani	 	 and Chintamani Saran Nath Sah Deo vs Commissioner of Income tax	 Bihar and Orissa	 (1961)41 I.T.R. 506	 applied. The parties	 who were businessmen well versed in their trade	 must be assumed to have 	known the difference between the two expressions "premium" and 'rent 	 and they had designedly used those two expressions to connote two different payments. The annual rent fixed was a considerable sum of Rs. 54	500/ and the premium	 when spread over 10 years would work out to Rs. 22	500/ a year. There was no reason	 therefore	 to assume that the parties camouflaged their real intention and fixed a part of the rent in the shape of premium. The L/P(D)5SCII 13 812 mere fact that the premium was made payable in instalments could not obviously be decisive of the question	 for that might have been to accommodate the lessee. [815 B	 C] The construction based on the clause in the lease deed that on the de.fault in the payments of the instalments of the premium or rent	 the lessor shall be entitled to recover the balance of the unpaid premium and not the entire balance of the premium	 really ignores the main terms of the lease. In the context of the other clauses	 this clause could not be so construed as to override or come into conflict with the main terms of the lease deed. [815 H	 816B]