Re Addie and Sons
| Jurisdiction | Scotland |
| Judgment Date | 30 January 1875 |
| Date | 30 January 1875 |
| Court | Exchequer (Scotland) |
NO. 1.-IN THE EXCHEQUER, SCOTLAND.-FIRST DIVISION.
Income Tax. - Coal and Iron Masters not entitled to deduction from profits of per-centage claimed for pit sinking and for depreciation of Buildings and Machinery.
At a meeting of the Commissioners for General Purposes acting under the Property and Income Tax Acts for the Middle Ward of the County of Lanark, held at Hamilton upon the 12th October 1874, for the purpose of hearing and disposing of Appeals under the said Acts, for the year ending 6th April 1875.
Messrs. Robert Addie & Sons, Coal and Iron Masters, carrying on business at Langloan and elsewhere, in the Parish of Old Monkland and County of Lanark, appealed against the assessment made on them under Schedule D. of the Act 5 & 6 Vict. cap. 35, intituled "An Act for granting Her Majesty Duties on "Profits arising from Property, Professions, Trades, and "Offices," and subsequent Income Tax Acts referring thereto, in respect of the profits arising from their business for the year preceding in so far as the said assessment includes two sums of 5525l. 19s. 9d. and 4435l.being a per-centage which they claim to deduct for pit sinking and for depreciation of buildings and machinery respectively, and for which they maintain they were not assessable.
Messrs. Addie & Sons stated that they carry on, and have for a number of years past carried on business as coal and iron masters. They manufacture pig-iron at their works at Langloan, and they hold a number of mineral fields under leases of 31 years, which leases are in various periods of their currency. The minerals wrought under these leases are coal, ironstone, and fire-clay. As such lessees Messrs. Addie have sunk at their own expense the pits from which the minerals are raised. They also require to erect, and do erect at their own expense, machinery and buildings of various kinds, including winding and pumping engines, pithead buildings, and the like.
The Appellants submitted that in ascertaining the profits upon which they are liable to be assessed under the said Act, there ought to be deducted from the gross annual receipts derived from their business (1), a sum in respect of the cost of sinking the pits; and (2), a sum in respect of the cost of buildings and machinery.
1. With respect to their pits, they explained that most of them are sunk and used for working ironstone, and are wrought only for comparatively short periods, as the ironstone seams are...
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