Cecil Bros Pty Ltd v. Federal Commissioner of Taxation

(1964) 111 CLR 430
37 ALJR 445

---

(Judgment by: Dixon J.)

CECIL BROS. PTY. LTD. v FEDERAL COMMISSIONER OF TAXATION

Court:

Judges: Owen J.

Dixon C.J. Kitto J.
Taylor J.
Menzies J.
Windeyer J.

Subject References:
Income Tax

Judgment date: 25 February 1964

---

Judgment by:
Dixon J.

This is an appeal by a taxpayer, pursuant to s. 260 of the Income Tax and Social Services Contribution Assessment Act 1936-1960 (Cth) from an order of a Judge of this Court, made on appeal from an assessment of the Commissioner, referred to the Court pursuant to s. 187 (b). The learned judge, Owen J., dismissed the appeal from the assessment.

The facts of the case are sufficiently set out in the judgment of Menzies J. which I have had the advantage of reading and I shall not repeat them. Upon those facts, once it was held that the payment of the amount received by Breckler Pty. Ltd. from the taxpayer company was paid for boots and shoes as stock in trade, there could, I think, be no ground for excluding any part of it from the allowable deductions from assessable income. In my opinion, s. 260 of the Act can have no application to such a case as the present. Indeed, in spite of the views expressed by Owen J. and by Menzies J., I have great difficulty in seeing how it could apply to defeat or reduce any deduction otherwise truly allowable under s. 51. Moreover, I do not think that on the facts of this case there was any contract, agreement or arrangement to which the taxpayer was a party, falling within s. 260. But subject to the foregoing, I agree with the reasons given by Menzies J. for allowing the appeal. I think that the appeal should be allowed and the assessment set aside and remitted to the Commissioner for reassessment.