ADMIN EXPLORATION PTY. LTD. (IN LIQUIDATION) V. COMMISSIONER OF TAXATION

IN THE HIGH COURT OF AUSTRALIA

ADMIN, EXPLORATION P2Y. LED. CIN LIQUIDAGTON)

REASONS FOR JUDGMENT

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Judgment Colivered Gtreressssrsessrveercersrsrveessserveistseserneensis Ohno Hh, DEGBMBER, 1972...

RM.73/20133

ADMIN EXPLORATION PLY. LID. CIN_LIQUIDATION )

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THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

ORDER

Appeal allowed with costs. Assessment set aside. Direct the Commissioner to re-assess the tax payable by the taxpayer without including in the assessable income any part of the proceeds of the sale by the taxpayer of 55,000 options to subscribe for shares in North Flinders Mines N.L. Order that the Commissioner pay the taxpayer's costs. :

Usual order as to exhibits.

ADMIN EXPLORATION PLY. LTD. IN LIQUIDATION)

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THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

JUDGMENT MASON J.

ADMIN EXPLORATION PTY. L&D. (IN LIQUIDATION)

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THE COMMISSIONER OF TAXATION - OF THE COMMONWEALTH OF AUSTRALIA _

This is an appeal by the taxpayer against an assessment to income tax for the year ended 30th June 1970 by which the respondent included in the taxpayer's assessable income a sum of '$298,267, being part of a sum of $313,267 which the taxpayer received as consideration for the sale in that year of 55,000 options to subscribe for the shares in North Flinders Mines N.L. The respondent's case was that the profit of $298,267 made on the sale was assessable income of the tax- payer by virtue of s. 26(a) of the Income Tax Assessment Act 1936-1970. The taxpayer contended that it was a capital profit, that it did not fall within the ordinary concept of income, or within s. 26(a). Alternatively, it claimed that the sum was exempt income under s. 23(p) of the Act. Finally, in the event of the failure of its principal submissions the taxpayer submitted that the sum of $15,734 was deductible as expenditure on exploration and prospecting.