Adams v Commissioners of Taxation [1909] HCA 94

aon Sad Adams (1912) 16CLR 493

H.C. or A. 1909. ———

Sypsey,

April 13, 14, 15, 21.

Griffith C.J., O'Connor and Isaacs JJ.

HIGH COURT [1909,

(HIGH COURT OF AUSTRALIA.)

ERNEST HENRY ADAMS . 2 3 APPELLANT,

AND

THE COMMISSIONERS OF TAXATION . ResponpEnts;

AND

THE COMMISSIONERS OF TAXATION . APPELLANTS,

AND ERNEST HENRY ADAMS . é 3 . RESPONDENT,

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES.

Land and Income Tax Assessment Act 1895 (N.S. W.) (59 Vict. No. 15), secs. 15, 17, 28—Land and Income Tax (Declaratory) Act 1898 (N.S.W.) (No. 37 of 1908)—Land and Income Tax (Amendment) Act 1904 (N.S.W.) (No. 17 of 1904), sec. 3(2)—Local Government Act 1906 (N.S. W.) (No. 56 of 1906), sec. 150—Income tax—Income from colliery—Ownership or use of land—Business or trade—Land subject to income tax—Taaable income for year preceding year of assessment to be taxable amount for year of assessment.

'The appellant was the public officer of owners of land upon which they carried on coal mining operations, and their income during the years 1906 and 1907 was derived from the working of their coal mines and from the sale of the coal.

Held, that the appellants' income was derived from the ownership or use of land within the meaning of sec. 17 (vii.) (viii.) of the Land and Income Tax Assessment Act 1895, and that the appellants in their assessment of their income for the year 1907 were not entitled to the deductions allowed to per- sons deriving their income from a business under sec. 28 (vi.) of that Act.

Per Grifith C.J.—A trade is not a business within the meaning of sec. 28 if all the income is derived from the ownership or use of land.

10 O.L.R.} OF AUSTRALIA.

'The Act 3 Ed, VIL, No. 17, Land and Income Tax (Amendment) Act 1904, H. C. o A.

provided (sec. 3 (2) ), that in assessing the income tax for the year 1905 or any subsequent year the amount of taxable income for the year immediately preceding the year of assessment should be the taxable amount for the year of assessment.