Northumberland Development Co P/L v Commissioner of Taxation [1994] FCA 784

JUDGMENT No. 2.5..ch nme walt

CATCHWORDS

INCOME TAX - assessable income - income - coal interest forfeited to Crown in circumstances where no compensation payable ~ right of compensation subsequently provided for - compensation to be paid by formula taking into account the application of an incremental factor from the date of forfeiture to the date of determination - payment in single lump sum ~- whether payment received income or capital - essential character of payment remained compensation for forfeited coal interest rather than in part compensation for forfeited coal and in part compensation by way of interest on value of forfeited coal.

Coal Acquisition Act 1981 (NSW): ss.5 & 6 Coal Acquisition (Compensation) Arrangements 1985: cl.19 Income Tax Assessment Act 1936 (Cth): s.25(1)

estminst imite: [1947] AC 390; distinguished. W c & imited v. Deputy Federal ¢ issijione of Taxation (1930) 44 CLR 24; distinguished. issi e Z) v rsh (1952) 5 AITR 424; distinguished. McLaurin v. Federa} Commissioner of Taxation (1960-61) 113 CLR

341; discussed.

[e) T, tion (1965) 113 CLR 341, discussed. ig Union Firecl Co _v. Commissioners o nian e e [1922] SC (HL) 112; applied.

No NG 945 of 1993

RECEIVED

HILL J 27 OCT 1994 SYDNEY |ERAL COURT OF 26 OCTOBER 1994 FeO USTRALIA

PRINCIPAL REGISTRY

IN THE FEDERAL COURT OF AUSTRALIA

S CT REGISTRY No NG945 of 1993

wwe we ww

BETWEEN: NORTHUMBERLAND DEVELOPMENT _ CO PTY LIMITED Applicant AND: COMMISSIONER OF TAXATION Respondent CORAM: HILL J PLACE: SYDNEY DATED: 26 OCTOBER 1994 MINUTES OF ORDER THE COURT ORDERS THAT: 1. Application allowed. 2. Objection decision set aside and in lieu thereof ordered that the applicant's objection be allowed. 3. Application remitted to the Commissioner' for reassessment in accordance with law. 4. Respondent to pay applicant's costs. Note: Settlement and entry of orders is dealt with in