Peyton v Commissioner of Taxation (Cth) [1963] HCA 33

Peyton v Commissioner of Taxation (Cth) [1963] HCA 33

The appellant incurred the outgoing not in gaining or producing assessable income, but in parting with the means by which he had been gaining and producing it; thus, the deduction is not allowable under s. 51(1).

Jurisdiction
Australia
Procedural Posture
Appeal / Case Stated Under S. 18 of the Judiciary Act
Outcome
The question in case stated answered 'No'. Costs of case stated to be paid by appellant.
Legal Topics
['income Tax' 'deductions' 'business Losses' 'outgoing Incurred in Producing Assessable Income']
['taxation Law'] ['income Tax' 'deductions' 'business Losses' 'outgoing Incurred in Producing Assessable Income']

Case Brief

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Procedural Posture

Appeal / Case Stated Under S. 18 of the Judiciary Act

Legal Issues

  1. 1 ['Whether an amount retained by the lessor to cover the estimated cost of repairs is deductible under s. 51(1) of the Income Tax Assessment Act' 'Whether the outgoing was incurred in gaining or producing assessable income or in carrying on business for that purpose']

Ratio Decidendi

The appellant incurred the outgoing not in gaining or producing assessable income, but in parting with the means by which he had been gaining and producing it; thus, the deduction is not allowable under s. 51(1).

Court Disposition

The question in case stated answered 'No'. Costs of case stated to be paid by appellant.

Orders

  • ["Question in case stated answered 'No'." 'Costs of case stated to be paid by appellant.']