Agricultural Credit Corporation, Ltd v Vale

• Jurisdiction: Ireland
• Judgment Date: 25 January 1935
• Date: 25 January 1935
• Court: High Court (Irish Free State)

[H. C., I.F.S.],

Agricultural Credit Corporation, Ltd.

and

Vale

Income assessable -Profit on realisation of investments - Company formed under the Agricultural Credit Act, 1927 (No. 24 of 1927) - Whether purchase and sale of investments formed part of the "trade" of the Company - Commissioners' finding - Evidence to support finding - Jurisdiction of Court to interfere therewith - Correct test applicable.

The Agricultural Credit Corporation was formed under the provisions of the Agricultural Credit Act, 1927, as a limited Company "having for its principal object the giving of credit to persons engaged in agriculture and businesses ancillary to agriculture." By the objects clause of its Memorandum of Association, the Corporation was empowered "to invest any moneys of the Company not immediately required in the purchase of stocks, shares, bonds or debentures" or in subscrption therefor, or in bills or notes issued by the Minister of Finance or the British Treasury, and was empowered to vary investments, subject to the limitation that all such investments should be trustee securities. In the trading year ended the 31st October, 1930, having large surplus funds available, the Corporation made a number of purchases of British Government securities, and later during the same year realised most of these investments. A profit of £7,268 was made by the sale of these securities, and this profit was shown in the Corporation's profit and...