| 8/2/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 22 |
Decided on 15 May 1959 |
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Powers Of The Board To Fix Profits At Its Discretion Whilst Ignoring The Taxpayer's Trade Books
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The Revenue did not accept the extremely low profits declared by the taxpayer and raised estimated assessments. The relative objection was refused and the Commissioner made various remarks regarding the state of taxpayer's trade records. The Board essentially agreed that the records were not satisfactory and proceeded to raise its own assessment by calculating profits at a percentage on turnover. An appeal was filed to the Court basically arguing that the trade records should have not been discarded and that the assessment on taxpayer should have been raised accordingly.
The Revenue contended that the Board had absolute powers in this matter and that the appeal should therefore be rejected. The Court stated that it could not be prevented from examining the extent and powers of the Board as that was a point of law. The Court however found that there was nothing in the law which required the acceptance of a taxpayer's trade records as binding evidence. Moreover, the Board had full powers to weigh all the circumstances of the case, including the evidence heard and the state of taxpayer's records. The Board's conclusions on such issues were points of fact and no valid appeal could be made thereagainst.
BSC Case No: 19/57
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