Bowden Investments Pty Ltd & Ors v. The Commissioner of Taxation of the Commonwealth of Australia [1987] FCA 390

CATCHWORDS

Income Tax - acquisition of land with intention that a portion of it be retained as an investment - whether profit on the sale of such land is capital or income pursuant to s.25 Income Tax Assessment Act - whether the sale of land is amere realization of an investment or an act done in the

carrying on of a business.

Income Tax Assessment Act 1936 (Cth) ss.25. 26, 36.

BOWDEN INVESTMENTS PTY. ULTD.& OTHERS

and

THE COMMISSTONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Q. Nos. G 172 to 191 of 1986

Fox, Northrop and Burchett Jd.

15 July 1987

Sydney

FEDERAL COURT OF AUSTRALIA

PRINCIPAL REGISTRY

ta rey

IN ERAL COURT OF AUSTRALIA

) - \ OVEENSLAND DISTRICT REGISTRY ) 9. No. G 172 of 1986 GENERAL DIVISION )

ON_APPEAL FROM THE SUPREME COURT OF QUEENSLAND

BETWEEN :

BOWDEN INVES PTY. LTD. IN RE: HIGHF E _ LTD. Appellant

and

COMMISSIONER OF TAXATION OF nis COMMONWEALTH OF AUSTRALIA Respondent

COURT: FOX, NORTHROP AND BURCHETT JJ.

DATE: 15 JULY 1987 PLACE: SYDNEY

MINUTE OF ORDER

THE COURT ORDERS THAT the appeal be dismissed with costs.

(Settlement and entry of orders is dealt with in 0.36 of the Rules of Court.)

IN T OF AUSTRALIA ) . ) NS CT _REGI Y ) Q. Nos. G 172 to 191 ) of 1986 GENERAL DIVISION ' N P) PR! COURT OF SL BETWEEN: BOWDEN INVESTMENTS PTY. LTD. and QTHERS Appellants and THE COMMISSIONER OF TAXATION COMMO OF AUSTRALIA Respondent

COURT: FOX, NORTHROP AND BURCHEIT JJ. DATE: 15 JULY 1987 PLACE: SYDNEY

REASONS FOR JUDGMENT

THE COURT

These 20 appeals from 20 judgments of the Supreme Court of Queensland were heard together. Each appellant is a proprietary company and is a member of a partnership known as Pine Rivers Consolidated ("the Partnership"). The effect of the 20 judgments appealed from is that income in the sum of $962,500 derived in the income year ended 30 June 1979 from the sale of a parcel of land was assessable income under paragraph 25(1)(a) of the Income Tax Assessment Act 1936