McCARROLL V. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

IN THE HIGH COURT OF AUSTRALIA

McCARROLL

THE COMMISSIONER OF TAXATION OF

REASONS FOR JUDGMENT

Judgment delivered at... 222M enee ee ne nce eneeneeeneeeeene Friday 4th Decem

on.

McCARROLL ve

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

ORDER

Appeal dismissed with costs. Assessment confirmed. Usual order with respect to exhibits.

McCARROLL

ve

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

JUDGMENT WALSH J.

McCARROLL ve

THE COMMISSIONER OF TAXATION OF THE COMMONWSALTE OF AUSTRALIA

In his return of income for the year ending on 30th June 1968 the appellant disclosed a taxable income of $984. A notice of assessment issued on llth June 1969 and an adjustment sheet which accompanied it showed that the respondent had added to the taxable income the sum of $2681 and had based his assessment on a taxable income of $3665. In the tax year the taxpayer had been paid part of the price of a property which he had sold in 1964 for a sum much higher than the price which he had paid for it when he bought it in 1957. The property was at Lalor not far from Thomastown and was some eleven or twelve miles from Melbourne. It was bought by the taxpayer for £11,500 and sold by him for about £38,000. The respondent, after allowing for certain costs and expenses, computed the net gain as being a little over $51,000. He treated that net gain as being taxable income. He calculated that $2681 was the amount which represented the profit component in that part of the sale price which had been received in the tax year. The taxpayer gave a notice of objection by which he objected to the inclusion of the anount of $2681 or any part of it in the taxable income, The objection was disallowed and at the request of the appellant it was treated as an appeal and forwarded to this Court.

The question for decision. is whether or not