Imara Steel Mills Limited v Commissioner of Investigations and Enforcement (Income Tax Appeal E140 of 2024) [2025] KEHC 15394 (KLR) (Commercial and Tax) (30 October 2025) (Judgment)

Facts

The Respondent, the Kenya Revenue Authority (KRA), conducted a tax audit on the Appellant for the income years 2015 to 2019 and subsequently issued additional assessments for Income Tax and Value Added Tax amounting to Kshs. 681,350,937/= excluding penalties and interest. The Appellant lodged an objection dated 27th April 2022, which was acknowledged by the Respondent on the same day. The Respondent thereafter issued an Objection Decision dated 24th June 2022, which the Appellant states was only received on 23rd December 2022. The Appellant appealed to the Tax Appeals Tribunal, which upheld the Respondent’s assessments.

Issues

1. Whether the Tribunal erred in failing to find that the Objection Decision was issued beyond the sixty (60) days prescribed under Section 51(11) of the Tax Procedures Act (TPA)
2. Whether the Tribunal erred in failing to find that the Respondent’s assessments for the years 2015 and 2016 were time-barred under Section 29(5) of the TPA
3. Whether the Tribunal erred in failing to consider and determine the issues raised in the Appellant’s pleadings and submissions

Reasoning

The Respondent did not controvert the allegation that it sent the decision to the incorrect email address. The statutory obligation to communicate a decision is mandatory and not a procedural technicality.

Outcome

The Tribunal’s decision is set aside and the case is remanded to the Tax Appeals Tribunal for reconsideration.

Authorities cited