CIR v British Salmson Aero Engines Ltd-

an exclusive license for 10 years was granted for the manufacture of an airplane engine made by a
French company. The consideration was £25,000 payable in three installments and a royalty of
£2,500 yearly over the next 10 years. The Court of Appeal held the lump sum was capital but that
the royalty constituted income.

Repetitive, flow from a source , received in course.

nnc imply ~ all. ~trading

Intention ~ realized constitute K accretion, not liable.

Financing irrelevant,  seeking is not present.

Isolated ~ further strengthen argument

CIT, Bengal, v Shaw Wallace & Co ~ connotes a periodical monetary return ‘coming in’
with some sort of / expected regularity, from definite sources.

nnc continuously productive ~ whose object ~ production of definite return.

Apprehension cause to sale – K.

Habitual, mere bets.

FCT v Cooke and Sherden =saves from incurring expenditure ~ income is not saved from
going out.

Mamor S/B v DGIR’

Estimated ~receivable not change nature of receipt ~ commercial method.

concern ~ represents a payment for; is “” in nature.