Commissioner of Taxation v. Northwest Iron Company Ltd [1986] FCA 93

CATCHWORDS | Income Tax - Capital expenditure incurred on pipeline, pellet plant *; | ' and other facilities-—in connection with Savage River mine ~ Whether wt

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deductible under s.122 of Income Tax Assessment Act - Whether incurred \ in connection with the carrying on of mining operations upon a mining

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property or on necessary plant or development of the mining property - if Whether in respect of one income year taxpayer was entitled to a |.

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deduction under 5.62AA

Income Tax Assessment Act 1936, ss.62AA, 80, 122(1), 122A, 122C, 122D, i ' 123A. ' Income Tax Assessment Act No. 2 1968, ss.17, 21, 23. }

Iron Ore (Savage River) Agreement Act 1965 ({Tas.), ss.4, 8, 9, 1l. Ys

Federal Commissioner of Taxation v. B.H.P. (1969) 120 C.L.R. 240.

Federal Commissioner of Taxation v. I.C.1. Australia Limited (1972) Bs 127 C.L.R. 529. " Parker v. Federal Commissioner of Taxation (1953) 90 C.L.R. 489 Ps referred to. . -

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v. \ NORTHWEST TRON CO. LIMITED

' Bowen C.J., Toohey and Lockhart JJ. 27 March 1986 ' Sydney "x

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IN THE FEDERAL COURT OF AUSTRALIA

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NEW SOUTH WALES DISTRICT REGISTRY No. G209 of 1985

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GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES

BETWEEN : THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant AND: NORTHWEST IRON CO. LIMITED

y Respondent 1B \

MINUTE OF ORDER JUDGES MAKING ORDER : Bowen C.J., Toohey and Lockhart JJ

DATE 27 March 1986

PLACE Sydney

THE COURT ORDERS THAT:

1. The appeal be allowed with respect to the claim for an investment

allowance under s.62AA.

2. The appeal otherwise be dismissed.

3. The assessment be remitted to the Commissioner of Taxation for .'.

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amendment in accordance with the terms of this judgment.

4. The Commissioner of Taxation pay to Northwest Iron Co. Limited