Trojan v Corporation of Hindmarsh

Case [1987] FCA 276


NOT FOR DISTRIBUTION

IN THE: FEDERAL COURT OF AUSTRALIA )

1

SOUTH WACEs DISTRICT Rm;ISTRe )

No. G69 of 1987

1

DIVISIOly

1

9N APPFAL

from the Taxation

Appeals Division of the

Administrative Appeals

Tribunal

constituted by Dr. P. Gerber

and Hr. K. L. Beddoe

-:

WFAH PTY. LIMITED

Applicant

AND:

COMMISSIONER OF TAXATION

Respondent

MINUTE OF ORDER

JUDGE:

FOX J.

DATE OF ORDER:

14 May 1987

WHERE W E :

Sydney.

THE COURT ORDERS THAT:

1. The application for an extension of time for the filing

and serving of a notice of appeal be dismissed with

costs.

Note:

Settlement and entry

of orders is dealt with in

Order 36 of the Federal Court Rules.

NOT FOR DISTRIBUTION

IN THE FEDERAL COURT OF AUSTRALIA

)

NEW SOUTH HALE3 DISTRICT RECISTRY

)

No. G69 of 1987

)

DIVISIOY

1

ON APPEAL from the Taxation

Appeals Division of the

Administrative Appeals Tribunal

constituted by Dr. P.Gerber

and Mr. K.L. Beddoe

BEmEEN:

HAPFAM PTY. LIMITED

Applicant

m:

COMMISSIONER OF TAXATION

Respondent

m: FOX J.

U : 14 MAY 1987

-0NS

FOR JUDGMENT

M TENPORE

This is M application for an extension of time in which to file a notice of appeal to this Court from a decision of the Administrative Appeals Tribunal dealinq with a taxation reference.

The decision in question was delivered on 10 November

1986, but

the letter enclosing it, which was sent on

that day,

was not received by the applicant until 17 November.

The principal of the applicant was then overseas and did

,/

not

return

until

26

November

1986

and

there

was then

the

r

necessity

of considering the matter and getting legal advice

which was not

forthcoming until early February 1987,

at which

time a

decision was made.

The present application was filed on

17 February 1987,

that

is, two months after the expiry

of the

stipulated time.

There were no grounds beyond the matters mentioned

as to

why the discretion of the

Court should be exercised.in favour of

the applicant.

In particular, no submissions were made by the

applicant on the likelihood of success of an appeal.

The appeal to this Court from the Administrative Appeals

Tribunal in

taxation matters is

the

same

a6

with appeals

generally from that Tribunal, namely

on a question of law only.

In the present case the applicant claimed an investment

allowance deduction under Division 3, Subdivision B of the Jncome

Tax h8se8sU1ent Act 1936 in respect of an amount of $20,600 which

was spent on the erection of a glasshouse, used for plant

propagation.

The tribunal regarded the principal issue as one whether

the glasshouse was

a "structural improvement" within the meaning

of s.82AE of the Act and there is nothing to show that they were

in error in so doing.

"hat the glasshouse was an item of plant within the meaning of 8.54 of the Act has not been disputed.

It seems to me

3 .

I

,

P'

plain enough that if s.83AE

is applied on the footing

that the

P

glasshouse does not fall within the

exceptions

itemised

in

sub-paragraphs (b)(i) to (vi), it is

ineligible

for

the

Investment allowance under Subdivision B.

Whether it is, or is

not. a "structural improvement" and whether

it does, or does not,

fall within any of the sub-paragraphs which I have mentioned, was

treated before the Tribunal as a question of fact and so far as I

can see was simply a question of fact.

It is my view, on the evidence,

that the glasshouse was

a "structural improvement"

and therefore that it was not eligible

for investment allowance. As I have said, the decision that the glasshouse was a "Structural improvement", in the context of what the tribunal decided and what has been put to me. seems to be

substantially a question of

fact.

At

all

events, I am

not

satisfied it is otherwise.

Being a "structural improvement", the

glasshouse clearly fails to satisfy the particular sub-paragraphs

of para.82AE(b) and in the terms of the opening words of that

section. Subdivision B of the Act does not apply in relation to

it.

In the circumstances it seems to me that leave should be

refused and this I do.

The order is that the

application be

refused and that the applicant pay the respondent's costs.

I certify that this and the two (2) preceding pages are a

true copy

of the Reasons for

Mr. J u s t i c ~ ~ -

Judgment

herein of his Honour

Aasociate

Dated: 14 Ma

19

' .

4 .

Counsel for the Applicant:

Mr A.B.K.

Lewis

Solicitors for the Applicant:

Messrs A.S.Lanrock & Son

Counsel for the Respondent:

Mr B.A. Coles

Solicitors for the Respondent:

Australian Government

Solicitor

Date of

hearing:

14 Map 1987

Date

Judgment

delivered:

14 May 1987

Details
AGLC
Trojan v Corporation of Hindmarsh [1987] FCA 276
Case
[1987] FCA 276
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Warham Pty Limited sought an extension of time to file a notice of appeal against a decision of the Administrative Appeals Tribunal regarding a taxation matter. The Tribunal had delivered its decision on 10 November 1986, but the applicant did not receive it until 17 November 1986 due to its principal being overseas. Legal advice was not obtained until early February 1987, leading to the application for an extension being filed on 17 February 1987, well beyond the stipulated time limit. The applicant did not provide any grounds beyond the mentioned circumstances for the court to exercise its discretion in their favour.

The legal issues before the court were whether to grant the applicant an extension of time to file a notice of appeal and, if so, whether an appeal from the Tribunal's decision should be allowed. The primary issue was whether the glasshouse constructed by the applicant qualified as a "structural improvement" under the relevant section of the Income Tax Assessment Act 1936. This was treated as a question of fact by the Tribunal, and the court found that the glasshouse did indeed qualify as a "structural improvement". As a result, the glasshouse was ineligible for the investment allowance deduction claimed by the applicant.

The court found that the application for an extension of time should be dismissed with costs. The court reasoned that the applicant did not provide sufficient grounds for the court to exercise its discretion in their favour, and there were no submissions on the likelihood of success of an appeal. The court further determined that the glasshouse was a "structural improvement", and therefore not eligible for the investment allowance. The applicant's appeal was dismissed, and they were ordered to pay the respondent's costs.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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