Commissioner of Taxation of the Commonwealth of Australia v Australia Gas Light Company & Anor [1983] FCA 368

CATCHWORDS Income Tax - Assessable income ~ Gas supplied and consumed but not billed at end of income year - Legal restraints upon demand for

payment ~- Whether debt created in respect of "unbilled gas" - Whether income derived - Exceptional circumstances applying to public

utilities ~ Relevance of accounting and commercial practice.

Gas and Electricity Act 1935, ss. 6-8, 107-13, 17, 18, 27-32.

Income Tax Assessment Act 1936, s.25(1)

Gas_and Electricity Requiations regs. 34, 42.

COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v THE

AUSTRALIAN GAS LIGHT COMPANY and NEWCASTLE GAS COMPANY LIMITED

NSW G120, 306-310 of 1983

CORAM: Bowen C.J., Fisher and Lockhart JJ. 16 December 1983

Sydney

IN THE FEDERAL COURT OF AUSTRALIA ) ) NEW SOUTH WALES DISTRICT REGISTRY ) Nos. NSW G120 and 306-310 of 1983

GENERAL DIVISION )

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND: THE AUSTRALIAN GAS LIGHT COMPANY and NEWCASTLE GAS COMPANY LIMITED

Respondents ORDER JUDGES MAKING ORDER: Bowen C.J., Fisher and Lockhart Jd. WHERE MADE: Sydney DATE: 16 December 1983 THE COURT ORDERS THAT: 1. The appeals Nos. NSW G120 and 306-310 of 1983 inclusive be dismissed. 2. The Commissioner of Taxation of the Commonwealth of Australia

pay to the Australian Gas Light Commpany and the Newcastle

Gas Company Limited their costs of the appeal.

IN THE FEDERAL COURT OF AUSTRALIA )

) NEW SOUTH WALES DISTRICT REGISTRY ) No. G120 and 306-310 of 1983

) GENERAL DIVISION )

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

- Appellant

E

THE AUSTRALIAN GAS LIGHT COMPANY and NEWCASTLE GAS COMPANY LIMITED

Respondents

CORAM: Bowen C.J., Fisher and Lockhart dd.

16 December, 1983

REASONS FOR JUDGMENT

THE COURT: The question which arises in these appeals from the Supreme Court of New South Wales (Lusher J.) is whether the taxpayers derived