| 8/2/2012 |
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| Board of Special Commissioners - Cases |
| Case no. 2/53 |
Decided: 31 March, 1953 |
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Deduction for expenses incurred in repairing a farmhouse; expenses which were the subject of a claim before the War Damage Commission - second proviso to article 10(1)(d), now repealed, Income Tax Act
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Appellant had requested the War Damage Commission to repay him the expenses he had made to repair a farmhouse. His claim was not accepted as the repairs had been made without the Commission's prior assessment and approval.
The Revenue disallowed the expense and quoted the second proviso to article 10(1)(d) which prohibited any deductions in respect of expenses which had been the subject of a claim to the War Damage Commission. Appellant maintained that the said article did not apply as his claim had been rejected.
The Board held that the law did not prohibit the deduction only when a claim to the War Damage Commission was successful or when the expense had been the subject of an assessment by the Commission. The said proviso disallowed the deduction where a claim was made to the War Damage Commission, independently of the outcome of such claim. The fact that the claim proved unsuccessful did not mean that appellant had a right to the deduction. Indeed appellant would have been entitled to a deduction in respect of the said expenses had he claimed the expenses in his income tax return rather than making a claim to the War Damage Commission.
Appellant entered an appeal from this decision before the Court (see case no. 8). The Court upheld the appeal and overturned the Board decision.
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