Fitzgerald v Revenue Commissioners

• Jurisdiction: Ireland
• Judgment Date: 02 December 1926
• Date: 02 December 1926
• Court: Supreme Court (Irish Free State)

S. C., J. C.,

Fitzgerald

and

Commissioners of Inland Revenue

Balance of profits and gains - Deductions allowable - Distinctionbetween capital and income - Sum employed as capital - Money not exclusively expended for purposes of trade - Business premises burned down - Covenant to repair and to yield up in repair - Cost of repairs - Expenses of fitting up temporary premises - Income Tax Act, 1842 (5 6 Vict., c. 35), s. 100, Sch. D, First Case, rr. 1 and 3 - Rules applying to both First and Second Cases, r. 1 - Finance Act (No. 2), 1915 (5 6 Geo. V., c. 89), ss. 38 and 40.

Appellant's business premises were burnt down in circumstances which precluded him from recovering the value of the property under any insurance policy or under the Criminal Injuries (Ireland) Acts. He held the premises under a lease containing a covenant by him, as lessee, to keep the premises in repair and yield them up in repair. It would have cost £18,713 to restore the premises to the condition required by the covenant in the lease. The Government made him a grant, ex gratia, of £8,500 in respect of the premises. Pending restoration, he acquired temporary premises, and to adapt these to the purposes of his business he expended £1,436 12s. 5d. in one year; he had expended £300 during the previous year in clearing the site of the destroyed premises, this being done...