6/1/2009

Board of Special Commissioners - Cases

Case no. 32/55   Decided: 2 June, 1956 previndexnext


Assessment of profit made by the Board - article 57(4), Income Tax Act, now 35(4), Income Tax Management Act

Appellant had a jewelry shop and his gross profit percentage in sales (10%) was deemed by the Commissioner to be too low. An assessment was issued, based on 25% gross profit on sales.

Appellant produced a profit and loss account and four registers containing all his purchases, sales, trade expenses and detailed stock lists. Nevertheless, basing themselves on the gross profit percentage realised by other jewelers (and appellant's own, for the previous year), the Board held that appellant's profit could not have been less than that assessed by the Commissioner.


Appellant entered an appeal from the Board decision claiming that the Board had gone against natural justice. The Court (case no.15) upheld the appeal, annulled the decision as regards the first year under appeal and sent the case back to the Board. Final decision not publishable.

 

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