Negative Instruments P/L v. The Commissioner of Taxation of the Commonwealth of Australia [1994] FCA 808

} 9% - JUDGMENT No. 0. Sunl arta

CATCHWORDS

INCOME TAX - sale of service station - loss on sale of plant and equipment ~ whether property disposed of

WORDS AND PHRASES - "disposed of" Income Tax Assessment Act 1936 (Cth) s.59

FAI Insurance Co Ltd v Savoy Ltd [1993] 2 VR 337

Pearce v FCT (1988) 85 ALR 359

RECEIVED ~4 NOV 1994

FEDERAL COURT OF

AUSTRALIA PRINCIPAL REGISTRY

Negative Instruments Pty Ltd vy The Commissioner of Taxation of the Commonwealth of Australia (No VG 158 of 1993)

Judge: Heerey J Date: 31 October 1994 Place: Melbourne

IN THE FEDERAL COURT OF AUSTRALIA

) ) VICTORIA DISTRICT REGISTRY ) No. VG 158 of 1993 ) GENE IVISION )

On appeal from the Taxation Appeals Division of the Administrative Appeals Tribunal constituted by Dr P Gerber, Deputy President

NEGATIVE INSTRUMENTS PTY LTD (formerly XL Petroleum Pty Ltd)

Applicant - and - THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent REASONS FOR _ JUDGMENT

JUDGE : Heerey J

DATE: 31 October 1994

PLACE : Melbourne

MINUTE OF ORDERS 1. Appeal allowed. 2. Order that the decision of the Administrative Appeals

Tribunal given on 2 April 1993 insofar as it affirms the decision of the respondent to disallow the applicant's objection dated 11 November 1986 under s.185 of the Income Tax Assessment Act 1936 (the Act) against the assessment of income tax dated 22 October 1986 in respect of the year of income ended 30 June 1985 be set aside and in lieu thereof

the applicant's said objection be allowed. 3. Order that the matter be remitted to the respondent to amend the applicant's assessment of income tax for the said

year of income in accordance with law.

4. Order that the respondent pay the applicant's costs of the

appeal, including reserved costs.

NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules