| 6/1/2009 |
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| Board of Special Commissioners - Cases |
| Case No. 29/66 |
Decided: 27 May, 1967 |
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Reopening of assessments is limited to that particular income which had been brought to charge by the relative assessment - article 59, Income Tax Act - now 38, Income Tax Management Act
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Appellant maintained that, once an additional assessment is issued in respect of a particular source of income, the original assessment is reopened in its totality. This argument was based on the provision of article 59 that "the assessment as made or agreed to or determined on appeal, as the case may be, shall be final and conclusive for all purposes to this Act as regards the amount of such chargeable income". Conversely, once reopened, such assessment was opened wholly.
This argument was not agreed to by the Board, because of the proviso to the same article: "Provided that nothing in this Part shall prevent the Commissioner from making any refund ... or any assessment or additional assessment for any year of assessment which does not involve reopening any matter which has been determined on appeal for the year". This proviso presumes that in a year of assessment there might be matters which cannot be further objected to, and others in respect of which Revenue may issue refunds or additional assessment within the statutory periods of prescription.
The issue of an additional assessment, therefore, renders as reopened only that particular income which had been brought to charge by that assessment. Had one to accept appellant's contention that any additional assessment reopens matters which had become final and conclusive other than that through a decision on appeal, the end result would be that no assessment would ever become definitive except when determined on appeal.
An appeal was entered before the Court from this decision (see case no. 71).
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