LITTLEWOODS MAIL ORDER STORES LTD. Vs. INLAND REVENUE COMMISSIONERS SAME V/S. MCGRFGOR (INSPECTOR OF TAXES).

JUDGEMENT

(1.) RATIO Decidendi: "Deduction in assessment shall be allowed unless contradictory to provision of law."

(2.) THESE are two appeals by Littlewoods Mail Order Stores Ltd. (which I shall call the company, one against assessments to income tax for the years 1960 -61, 1961 -62 and 1962 -63, the other against assessments to profits tax for chargeable accounting periods in the years 1959, 1960 and 1961. It is common ground that the decision in the profits tax case must follow that in the income tax case, and it is, therefore, with the latter that I will deal.

(3.) THE company carries on the business of selling a wide variety of goods in stores in London and the provinces. It also conduct a mail order business. This case relates to the profits of the companys trade. At all material times the company has had a large shop and offices in Oxford Street, London, in a building known as Jubilee House, which it has occupied exclusively for the purposes of its trade. Down to December 7, 1958, the company held the premises under a long lease from the freeholders, the Independent Order of Oddfellows. The term of the lease was 99 years from 1947. In 1958 there were, therefore, still 88 years to run. The rent was pound 23,444 a year.