| 7/2/2012 |
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| Board of Special Commissioners - Cases |
| Case No. 10/61 |
Decided: 7 March, 1962 |
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Appellant had the right to claim refund of tax even where the assessment had been raised and the tax paid according to the return as submitted - article 67, Income Tax Act, now 48, Income Tax Management Act
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When filling in his return appellant had inadvertently included income that was not chargeable to tax. An assessment was raised on the information submitted and tax paid accordingly. Years later, appellant realised he had made an error and submitted a claim for a refund, evidently outside the statutory time frame. The Commissioner refused to accept the claim on procedural grounds.
The Board held that the Revenue's practice was too restrictive. It resulted that the Department of Inland Revenue was only considering requests for refunds in the case of tax that had been overpaid by deduction at source and those concerning events subsequent to the raising of assessments which reduced the actual liability. Unless the matter had already been closed under appeal, in instances where tax is overpaid due to a genuine error, such as the filing of a wrong return, it was irrational to deny the right to a refund that was granted in wide terms by the law itself. Moreover, it was illogical to expect taxpayer to enter an objection at a point in time when he was as yet not aware of his error.
An appeal was entered before the Court from this decision (see case no. 48).
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