Inland Revenue v. Farie

Subject_1 Revenue Subject_2 Income-Tax Subject_3 Mines and Minerals Subject_4 Schedule A, Rule No. 3, and Schedule D (5 and 6 Vict. cap. 35), sec. 60; and sec.100, 1st Case, Rule 1; Act 29 Vict. cap. 36, sec.8.

Revenue — Income-Tax — Mines and Minerals — Case of Succession to a Colliery where Profits had decreased owing to “Specific Cause” — Act 5 and 6 Vict. cap.35, sec. 100, Schedule D, I. and II., Rule 4, also sec. 133; Act 28 Vict. c. 30, sec. 6; Act 29 Vict. cap. 36, sec. 8.

Where a coalmaster, who was also owner of the pit he worked and of the estate of which it formed a part, claimed a deduction from his profits in respect of capital lost through partial exhaustion of the mine, held that such a deduction was contrary to the policy of the Income-Tax Acts, and could not be given effect to.

This was a Case stated by the Income Tax Commissioners for the lower ward of Lanarkshire at the instance of the Surveyor of Taxes for the 3d district of Glasgow.

James Farie of Farme, the respondent, who carried on business as a coalmaster at Farme Colliery, near Rutherglen, had appealed to the commissioners against an assessment of £3500 made upon him under Schedule D of the Act 5 and 6 Vict. cap. 35, and subsequent Income Tax Acts referring thereto. Mr Farie was proprietor of the estate of Farme and occupier of the Farme colliery, forming part of that estate, to both of which he succeeded upon the death of his father on 30th September 1876.