Federal Coke Company Pty Limited v The Commissioner of Taxation of the Commonwealth of Australia [1977] FCA 29

CATC}:WORDS

Income Tax (Cth.) - Assessable income — Payment received without consideration - Whether compensation for lost profits - Whether received in course of business ~ Whether capital or income. tTncome Tax

Assessment Act 1946, s.25(1).

The Federel Cocke Company Pty. Limited v. The Commissioner

of Taxation of the Commonwealth of Australie

G No. 23 of 1977 G No. 24 of 1977

Before Bowen C.J., Nimmo and Brennan JJ.

Sydney 20th Tune, 1977

yr ae

st IN TY PLD SAL CONN? CF WweTn TTA " ) ) NEW. SOUTH WALES. DISTRICT REGISTRY) No. G ..22.. of 1977 (GEVFERAL eee. DIVISTON ) No. G 2h of 197

pene ; , THE FEDERAL COKE COMPANY

aaa . mite tb cave see teeseeeas

ooceceeccces., ABDELIANE.. sees

AND . | THE COMMISSIONER OF TAXATION

, 28, THR COLMONVEALTH OP. AUSTRALIA / seleeeeeese eee. RESpondent | ORDER

JUNGI(S) weKING ORDER : BOWEN C.J., NIMMO and BRENNAN JJ. DATE GF ORDER : 20th June, 1977

WHERE UATE : Sydney

THE COU-T OFDLRS TEAT:

1. Appeals allowed with cests. 2. Orcers of the Supreme Court of New South Wales set aside and

in liev thereof order that the appeals to that Court be allowed with costs and that each assessment be varied by excluding therefrom the sum of $499,567.00 as assessable income.

Bate Litered:

DILTRICM TOT,

At mnie memes

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IN THE FEDERAL COURT OF AUSTRALIA ) a No. G23 of 1977

NEW SOUTH WALES DISTRICT REGISTRY No. G24 of 1977

GENERAL DIVISION

CORAM: BOWEN C.J., NIMMO and BRENNAN JJ.

20th June, 1977

THE FEDERAL COKE COMPANY PTY. LIMITED and THE HISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

JUDGMENT:

BOWEN C.J.: These are two appeals brought by The Federal Coke Company Pty. Limited (hereinafter called "Federal") against a decision of the Supreme Court of New South Wales in its Administrative Division upholding income tax assessments issued against the company by the Commissioner of Taxation iu respect of the income years ended 30th June 1972 and 30th June 1973.