| 9/9/2010 |
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| Board of Special Commissioners - Cases |
| Case No. 18/51 |
Decided: 19 May, 1953 |
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The Commissioner may increase taxpayer's income only by means of an additional assessment under article 53; increasing income at refusal stage was depriving appellant of his right to object against the assessment - articles 52, 53 and 55 Income Tax Act, now 30 and 33, Income Tax Management Act
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In his tax return taxpayer had claimed a deduction in respect of certain expenses. The Commissioner had allowed these deductions in the assessment but taxpayer had other reasons to object against the said assessment.
Later, when the Commissioner issued his refusal of the objection, he disallowed the said expense that had been allowed. Appellant claimed that the Commissioner could not remove the deduction after having allowed it, as this had not formed part of the grounds of objection.
After considering the assessment procedure under article 52, and the appeals procedure under article 55, the Board held that when the Commissioner had disallowed the said expenses at refusal stage, he had deprived taxpayer of the legal means to defend himself. The same result could have been obtained by the Commissioner by issuing an additional assessment under article 53, instead of adding back the deduction at the refusal stage.
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