Decided on May 03,1951

Rellim Ltd Appellant
Vise (H M Inspector Of Taxes) Respondents


- (1.)The principal of law which govern this case are perfectly clear; and as the matter strikes me it is one which upon examination will be found to raise no more than a very short question -short, but not thereby easy to answer - namely whether or not the Commissioners had evidence before them upon which they could properly make the finding which they did. The Commissioners finding is expressed in these words : " We the Commissioners who heard the appeal found that the company was a trading company with trading profits". In my view that is a perfectly clear finding and is not open to the same sort of doubt to which the first finding of the Commissioners in the case of Leeming v. Jones was open. Thus, one is faced there was no evidence upon which the Commissioners could properly base that finding ?
(2.)The Commissioners refer in paragraph 1 of the case stated to the incorporation of the company in 1938 and to those of its objects as set out in clause 3 of its memorandum of association which they regard as being relevant. These extracts show, putting it shortly, that the company had power to acquire land and to hold land acquired as investments, and further that the company had power to carry on the business of a property company, that is dealing in land by purchasing and selling with a view to making a profit.
(3.)In paragraph 1(2) the Commissioners refer to the circumstance that in the year prior to the year ending April 5, 1947, the Inland Revenue had treated the company as an investment company, and that the company had been assessed to income-tax under Schedule A with relief for management expenses under Section 33 of the Income Tax Act, 1918. They then point out that in the year ended March 31, 1939, the following properties were purchased by the company, namely, eight houses in London Road, Kettering; four houses, half an acre of land and three garages in Netherfield Road, Kettering, and 13 acres of land at Barton Seagrave, near Kettering. They further point out that in the year ended March 31, 1944, a farm comprising 47 acres of land in Windmill Avenue, Kettering, was purchased. They then find that all these properties were let by the company to tenants, that the rents received were duly credited in the accounts, and that the company had no income from any other sources.

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