Case P51
Judges: HP Stevens ChJR Harrowell M
BR Pape M
Court:
No. 1 Board of Review
B.R. Pape (Member)
I have had the advantage of reading the reasons for decision of the Chairman, Mr. H.P. Stevens. I agree with his findings of fact and his conclusion.
2. As far as the notice of grounds of objection is concerned, the first ground refers to the surplus received on the disposal of the property. This surplus was calculated to be $65,065 and hence, in my opinion, the Commissioner's attention was not drawn to any contention by the taxpayer that a part of this ``surplus'' being an amount of $32,532 was not derived during the year ended 30 June 1974.
3. However I would also add that even if it could be found that the taxpayer did not dispose of the properties in question in the ordinary course of carrying on its business of property development, the sale price of $136,540 falls to be included in its assessable income for the year ended 30 June 1973 by virtue of the operation of sec 36(1) of the Act. In this respect the taxpayer had classified these properties as trading stock in the various returns of income which it lodged with the Commissioner. Moreover it included in its 1972 return of income the basis it used for the valuation of its trading stock (Sch. 11) in compliance with sec. 31(1) of the Act (see Exhibit 3). Here again the grounds of objection taken by the taxpayer would not in my opinion traverse the Commissioner's contention that the profit of $32,532 was properly included in the assessable income for the year ended 30 June 1974.
4. I would uphold the Commissioner's decisions and confirm the assessment of primary tax and the assessment of Div. 7 tax.
Claim disallowed
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