Case Q71

Judges: Before M
HP Stevens Ch

BR Pape M
TJ McCarthy M

Court:
No. 1 Board of Review

Judgment date: 5 August 1983.

---

B.R. Pape (Member)

I have had the advantage of reading the reasons for decision prepared by my colleague Mr. T.J. McCarthy. I agree with his findings of fact and the conclusion which he has reached.

2. The evidence in my view established that at the relevant time the partnership was carrying on the business of building home units for the purpose of resale. Accordingly the sale of lots 2 and 3 can properly be characterised as being a disposal of trading stock. Thus in computing the net income of the partnership under sec. 90, the proceeds of sale of $104,500 fall to be included in the gross assessable income under sec. 25(1) and the selling costs, purchase costs and costs of filling totalling $46,268 are allowable deductions under sec. 51(1).