Forwood Down & Co Ltd v Commissioner of Taxation (Western Australia)

53 CLR 403

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(Judgment by: Starke J)

Forwood Down & Co Ltd v Commissioner of Taxation (Western Australia)

Court:

Judges: Rich J

Starke JDixon J
Evatt J
McTiernan J

Subject References:
Taxation and revenue
Dividend duties
Sale of lease and machinery
Profit from sale taken into profit and loss account

Legislative References:
Dividend Duties Act 1902 (WA) No 32 - Section 5; Section 6

Judgment date: 26 August 1935

PERTH

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Judgment by:
Starke J

I agree that the appeal should be dismissed.

It appears to me that the mining lease and machinery on it were acquired by the appellant in the ordinary course of business as machinery merchants; it was disposed of at a date distant from the time of purchase but it was disposed of at a date distant from the time of purchase but it was disposed of in the ordinary way of business. The realization of the mining lease and machinery was not a mere change of investment but acts done in carrying on or carrying out the business operations of the appellant. Some little difficulty might have occurred as to the profit made on the transaction but for the fact that the parties in the Court below treated the sum assessed as a profit made on the sale of the mining lease. I see no reason why we should doubt the accuracy of the parties' assessment of the profit.