Guinea Airways Ltd. v. Federal Commissioner of Taxation (1949), 83 C.L.R. 584 (HC of A.)

A loss which an air transport company sustained when a large stock of spare parts (much greater than the annual quantity required for the maintenance of its aircraft) was destroyed in the Second World War, was a capital loss.

Before finding that a stock of spare parts held in order to meet possible future emergencies were capital assets rather than stock in trade, Kitto J. stated (p. 593):

"In the case of a banker, money is his stock in trade, and any profit or loss he makes in dealing with money in the course of his business is on revenue account, notwithstanding that the money is in a sense held in reserve. In a case such as the present, however, money is not stock in trade, and neither are spare parts and stores bought with it; and if either money or goods be lost while held as a fund or stock to meet future needs, the loss is a loss on capital account".