Expenditure-tax notice upheld where revived charging scheme applied to expenditure in the previous year.

Section 3 of the Expenditure-tax Act remained the charging provision, so tax was attracted to expenditure incurred in the previous year and assessed for the relevant assessment year. Section 53 of the Finance Act, 1964, merely revived the Expenditure-tax Act and did not change that basic scheme. Applying that framework, the assessee's accounting period from 1 July to 30 June meant the notice could validly seek a return covering expenditure from 1 July 1962 to 11 March 1963. The challenge to the notice therefore failed.

---

---

Issues: Whether section 53 of the Finance Act, 1964, authorised levy and collection of expenditure-tax for the period in question and justified the notice calling for a return from the deceased assessee's widow.

Analysis: Section 3 of the Expenditure-tax Act, 1957, is the charging provision and imposes tax for every financial year commencing on 1 April in respect of expenditure incurred in the previous year, while section 2(d) defines the assessment year as the year for which tax is chargeable. Section 53 of the Finance Act, 1964, was only a provision bringing the Expenditure-tax Act into operation again and did not alter the basic scheme that tax is attracted to expenditure of the previous year. On the facts, the assessee followed a year from 1 July to 30 June, and the notice could properly cover the period 1 July 1962 to 11 March 1963.

Conclusion: The notice was valid and the challenge failed; the petition was dismissed.

---