Davies Coop and Company Pty Ltd v Commonwealth [1935] HCA 74

54 C.L.R.] OF AUSTRALIA. 155

of its obtaining leave to appeal, the order for a new trial should H.C. or a.

be set aside and a verdict entered for the defendant. nea

Lustre

vis Hosrery Pursuant to the order giving leave to appeal a

the order for a new trial discharged and in ane liew thereof judgment of nonsuit entered. pa

Appeal dismissed with costs.

Solicitors for the appellant, Sly & Russell. Solicitors for the respondent, Campbell, Campbell & Campbell.

J.B.

(HIGH COURT OF AUSTRALIA.]

DAVIES COOP AND COMPANY PROPRIETARY

LIMITED Shahn oka: foo mnsegan nF as PLAINTIFF ;

AND

THE COMMONWEALTH . : f . Derenpant.

Bounty—Cotton yarn—Computation of bounty—Power to withhold bounty where "net x o. op 4. profits" exceed ten per cent of capital employed in manufacture—Cotton "1g Industries Bounty Act 1930-1932 (No. 13 of 1930—No. 17 of 1932), sec. 13, YH

M URNE, In ascertaining, for the purposes of sec. 13 of the Cotton Industries Bounty pear

Act 1930-1932, whether the "net profits" of any person, firm or company yee" 19, claiming bounty under the Act exceed ten per cent of the capital employed in the manufacture of cotton yarn the amount payable as Federal and State {iit} Starke,

income tax in respect of the profits of manufacture cannot be deducted from 4,d}}80" 2"

the profits.

Case Srarep.

In an action in the High Court by Davies Coop & Co. Pty. Ltd. against the Commonwealth of Australia for a declaration that in the computation of its net profits for the purposes of the

156 HIGH COURT

H.C. oF A. Cotton Industries Bounty Act 1930-1932 in respect of its business as hy a manufacturer of cotton yarn for the year ending 30th June 193 Davies there should be deducted as outgoings of such business all s one Oe payable by it by way of income tax, both Federal and State, i Tas Tespect of its income for such year from such business, the parties Goons: agreed in stating for the opinion of the Full Court a case which — was substantially as follows :—