Energy Resources of Aust Ltd v Commissioner of Taxation [2003] FCA 26

FEDERAL COURT OF AUSTRALIA

Energy Resources of Aust Ltd v Commissioner of Taxation [2003] FCA 26 TAXATION – trading stock – for all material years of income, taxpayer exercised option given by subs 31(1) of Income Tax Assessment Act 1936 (Cth) in favour of "cost price" basis of value of trading stock – common ground that certain elements of cost price had been omitted from value of stock at beginning and end of years of income – Commissioner agreed that opening and closing stock figures for year ended 30 June 1994 should be increased as taxpayer contended – Commissioner also agreed that closing stock figure for year ending 30 June 1993 should be increased – Commissioner contended he was not at liberty to increase opening stock figure for that year, ie, figure as at 1 July 1992, because s 29 of the Income Tax Assessment Act 1936 (Cth) required him to use same figure as closing figure for year ending 30 June 1992, and it was no longer possible for him to amend the assessment for that year because the four year period allowed for such amendment had passed – meaning of "value as ascertained under this ... Act" in s 29 of the Income Tax Assessment Act 1936 (Cth). Income Tax Assessment Act 1936 (Cth) ss 28, 29, 31, 170 Income Tax Assessment Act 1922 (Cth) s 16(a) Bombay Commissioner of Income Tax v Ahmedabad New Cotton Mills Company Ltd (1929) 46 TLR 68 cited Cribb v Federal Commissioner of Taxation [1963] QdR 541 cited Gilbert v Western Australia (1962) 107 CLR 494 cited R v Clyne; ex parte Harrap [1941] VLR 200 cited R v Tkacz (2001) 25 WAR 77 cited Baillie v Federal Commissioner of Taxation (1927) 40 CLR 156 discussed Rowntree v Federal Commissioner of Taxation (1934) 3 ATD 32 distinguished Case 10 (1947) 14 CTBR 68 approved Case 12 (1956) 6 CTBR (NS) 72 approved Australasian Jam Company Pty Ltd v Federal Commissioner of Taxation (1953) 88 CLR 23 distinguished Kirkpatrick v Commissioner of Inland Revenue [1962] NZLR 493 distinguished Deputy Commissioner of Taxation (NSW) v Clyne (1982) 60 FLR 45 cited Commonwealth v Opiel (1986) 86 ATC 5,013 cited Webb v Deputy Commissioner of Taxation (No 2) (1993) 47 FCR 394 cited Commercial Union Australia Mortgage Insurance Co Ltd v Federal Commissioner of Taxation (1996) 69 FCR 331 distinguished