The Appellant, who carried on the business of providing automatic machines for public use, dealt in and entered into arrangements for exploiting, certain automatic machines the use of which has been held to be illegal. The machines were set up in premises to which the public resorted, for public use, and the profits arising therefrom were divided between the Appellant and the occupier of the premises. On an appeal against assessments to Income Tax made to include profits so arising, the Special Commissioners held that the provision of the machines formed part of the Appellant’s ordinary business and that he was not entitled to claim that the portion of his profits derived from them was immune from taxation on the ground that it had been earned by unlawful means.
Held, that the profits were chargeable with Income Tax.
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MANN v NASH (H.M. INSPECTOR OF TAXES).(1) (1929-1932) 16 TC .