The taxpayer, which was a trader in commodity futures, purchased 15,000 ounces of gold and 500,000 ounces of silver shortly before its year-end and, at the same time, sold futures contracts for corresponding quantities of gold and silver at the same prices, for delivery after its year-end. Shortly after its year-end, it sold the gold and silver and liquidated the futures contracts.
Linden J.A. found that the trial judge's finding that the taxpayer was a commodity futures trader, whose business did not ordinarily include the buying and selling of commodities in their physical form, was "unimpeachable" after referring to the statement in re Bradford Roofing Industries Pty., Ltd., (1966) 84 WN. (Pt. 1) (N.S.W.) 276 at 285 that, regarding the phrase "in the ordinary course of the business", the "requirement is that the transaction must fall into place as part of the undistinguished common flow of the company's business, that it should form part of the ordinary course of the company's businesses carried on, calling for no remark and arising out of no special or particular situation".