Perrott v Deputy Federal Commissioner of Taxation (New South Wales)

40 CLR 450

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(Judgment by: Knox CJ)

Perrott
v Deputy Federal Commissioner of Taxation (New South Wales)

Court:

Judges:
Knox CJIsaacs J
Higgins J
Starke J

Subject References:
Taxation and revenue
Income tax
Buying and selling land
Money paid in installments

Legislative References:
Income Tax Assessment Act 1915 (Cth) No 34 - ss 3; ss 10

Hearing date: SYDNEY 1 May 1925
Judgment date: 1 May 1925

Sydney

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Judgment by:
Knox CJ

With reference to the first point argued by Mr. Watt, that is to say, whether these proceeds represented a change of investment, I think that the only reasonable conclusion on the evidence before the learned Judge was that at which he arrived, and therefore there is no fault to be found with his decision on that score. With regard to the second ground, as to the time at which these profits became available to be taxed as income, I think the learned Judge was right on that also, because the profits are chargeable with tax as being income consisting of proceeds of a business. It seems to me that once you get profits brought under that head you have to look at business principles and make up the account in the ordinary business way. Upon the evidence I am satisfied that the learned Judge was manifestly right in upholding the assessment. I therefore think that the appeal should be dismissed.