War Assets Pty Ltd v Commissioner of Taxation [1954] HCA 81

High Court of Australia Fullagar J. Dixon C.J. Williams and Kitto JJ. War Assets Pty Ltd v Commissioner of Taxation [1954] HCA 81

ORDER Appeal allowed with costs. Order appealed from discharged. In lieu thereof order that the appeals of the appellant company from the assessments of the commissioner be allowed with costs and that the assessments in respect of the year of income ending 30th June 1948, notices whereof are dated 7th September 1950, be amended so as to exclude from the assessable income the amount of £50,823 2s. 4d. shown in the alteration sheet accompanying such notices of assessment and that the assessments in respect of the year of income ending 30th June 1949, notices whereof are dated 7th September 1950, be amended so as to exclude from the assessable income the amount of £28,210 shown on the alteration sheet accompanying such notices of assessment.

Cur. adv. vult.

July 28, 1952 Fullagar J . delivered the following written judgment:—

I have before me two appeals by a company named War Assets Pty. Ltd. against assessments of income tax on income alleged by the commissioner to have been derived by it in the years ended 30th June 1948 and 30th June 1949. A large sum is involved, the taxable income assessed in respect of the former year being £50,354 0s. 0d., and in respect of the latter year £28,413 0s. 0d. The assessments include additional tax claimed under s. 226 (2) of the Income Tax Assessment Act 1936-1947. The commissioner's figures are not challenged as such, and no question of assessable income or allowable deductions is raised. The objection taken by the appellant company is, in effect, that the income in question was derived not by it, but by another company named Milne Bay Merchants Pty. Ltd. Because of the nature of the case and because it is one which is obviously likely to go on appeal in any event, I think it desirable to set out the facts in considerable detail. It will be convenient to refer to the two companies respectively as "War Assets" and "The Milne Bay company".