Doherty v Federal Commissioner of Taxation [1933] HCA 10

REPORTS OF CASES

DETERMINED IN THE

HIGH COURT OF AUSTRALIA

1932-1933.

(HIGH COURT OF AUSTRALIA.]

DOHERTY . . - w a 3 : . APPELLANT; AND

THE FEDERAL COMMISSIONER OF TAXATION ResponveEnt.

Income Tax '(Cth.)—Assessment—Deduction—Pastoral property—Trust estate— Business carried on at a loss—Loss not allowable as a deduction from other income of beneficiary—Income Tax Assessment Act 1922-1930 (No. 37 of 1922—No. 60 of 1930), sec. 26.

H.C. oF A. 1933, ad

Mutpourse,

'The taxpayer, who was entitled to an interest in certain pastoral properties Pri! 3, 12.

under the will of her brother, claimed to deduct, under sec. 26 of the Income Tax Assessment Act 1922-1930, from her assessable income derived otherwise than from the trust estate her proportion of a loss incurred by the testator's representatives in carrying on the pastoral properties for the financial period in question.

Held, that the taxpayer's share of the loss incurred in carrying on the pastoral properties could not be deducted from income derived by her otherwise than from the trust estate.

Apprat from the Board of Review. The taxpayer, Grace Doherty, claimed to deduct from the income for which she was assessed for the financial year 1931-1932 a sum

Starke J.

H.C. or A. 1933. eas

Donerry v. FEDERAL Commus- 'SIONER OF TAXATION.

April 12,

HIGH COURT (1933.

of £6,515, her share of a loss made in carrying on a pastoral business in Australia. The Commissioner disallowed the deduction, and the Board of Review confirmed his decision. From that decision the taxpayer now appealed to the High Court. The facts and arguments sufficiently appear in the judgment hereunder.

Wilbur Ham K.C. and Russell Martin, for the appellant.

Robert Menzies, A.-G. for Victoria, and C. Gavan Duffy, for the respondent.

Cur. adv. vult."

Srarxe J. delivered the following written judgment :—