De Grey River Pastoral Company Limited v Deputy Federal Commissioner of Taxation for Western Australia [1923] HCA 42

C.L.R.) OF AUSTRALIA. 181

Case remitted to Supreme Court to be dealt H. ©. or A. with as may be considered just. Appellant —\°°*- 7 to pay costs of appeal. Uston

THEATRES Lrp.

Solicitors for the appellant, John Williamson & Sons. v. Marrick-

Solicitors for the respondent, W. R. & F. B. Jones. VILLE ; BL, Boupixes

Le Lr.

a en

(HIGH COURT OF AUSTRALIA.)

THE DE GREY RIVER PASTORAL COM- ) PANY LIMITED .- . . . , J APPELLANT;

AND

_ THE DEPUTY FEDERAL COMMISSIONER ) OF TAXATION FOR WESTERN AUS- RESPONDENT.

; TRALIA | Income Tax — Assessment —Oompany — Assessable income — Pastoral business — 44 (, op A. Reduction of pastoral areas — Kffect of Act of Parliament — Sale of cattle — 1923, Profits from sale—Realization of assets—Proceeds of business—Earnings—

Income Tax Assessment Act 1915-1918 (No. 34 of 1915—No. 18 of 1918), secs, Pern, 3, 146—Land Act Amendment Act 1917 (W.A.) (7 Geo. V. No. 19), sec. 30 (2). Sept. 19, 21.

A pastoral company which owned several large stations in Western Australia starke J. being compelled by the Land Act Amendment Act 1917 (W.A.) to reduce the area of its holding, resolved to sell, and did sell, two of its stations and (to other purchasers) the bulk of the cattle upon those two stations,

Held, that the company was assessable to Federal income tax in respect of the profit made on the sale of the cattle as being proceeds of the business carried on by the company and also earnings of the company.

Apprat from the Federal Commissioner of Taxation. The De Grey River Pastoral Co. Ltd., having been assessed for Federal income tax for the year 1920-1921 by the Deputy Federal

, VoL. XxXxv. 13

H.C. or A. 1923.

ws

De Grey RIveR Pastorar Co. Lrp. Deputy FEDERAL Commis- SIONER or TAXATION (W.A.).

Sept. 21.

HIGH COURT (19:

Commissioner of Taxation for Western Australia, appealed to ¢ High Court from that assessment. and the appeal came on for hea before Starke J., in whose judgment hereunder the material fa are stated.