| 8/2/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 71 |
Decided on 28 November 1967 |
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Additional Assessments Do Not Re-Open Original Assessments Which Had Become Final And Conclusive
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The taxpayer had agreed with the Revenue on assessments for certain years which had been under objection. These assessments thereupon became final and conclusive, but the right to claim a refund in their respect remained vested in the taxpayer as long as this was made within the time limit set by Law. (To note that a settlement under objection is not settlement by way of appeal which closes all matters definitely).
Later, the Revenue issued additional assessments, and the taxpayer claimed a refund in respect of the original assessments on account of certain deductions. These could not be claimed against the additional assessments. The claim for refund was filed outside the time limit prescribed by law, but the taxpayer claimed that once the Commissioner had issued additional assessments, he had automatically re-opened any assessment raised for the relative year.
Both the Board of Special Commissioners and the Court rejected the claim. The two issues, i.e. a claim for refund and the raising of additional assessments, each had their own respective time limits. These were not interconnected, and there was nothing in the law which could be interpreted to mean that an additional assessment raised within the proper time limit would re-open any other issue for the same year that had become final and conclusive and also statute barred. Otherwise it could be held, manifestly incorrectly, that all matters were still open as long as the time limit for the raising of additional assessments had not lapsed.
BSC Case No: 18/66 AND 29/66
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