Gilfilain Air Conditioning Limited v Commissioner of Domestic Taxes (Appeal 176 of 2021) [2021] KETAT 15 (KLR) (23 December 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 15
- Citation
- [2021] KETAT 15 (KLR)
- Decided
- 23 December 2021
AI Summary
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TypeTax AppealPostureAppeal from a VAT assessmentCoramPATRICK CHAIRPERSON, DELILAH K. NGAIA MWAI MBUTHIA, ELISHAH NJERU TlklOT14Y CHESIRE
Holding
The Tribunal finds that the Appellant can claim the unpaid invoices as input tax under the VAT Act and the Respondent's objection decision was wrong and invalid in law.
Facts
The Respondent issued additional VAT assessments on the Appellant for the months of January to May 2018, claiming that the Appellant's purchases did not match with the sales as declared by the suppliers. The Appellant objected and provided invoices and supporting documents.
Issues
- Whether the unpaid invoices should be claimed under the VAT Act
- Whether the Respondent was justified in law to disallow the invoices on the basis of missing proof of payment
Reasoning
The Tribunal ruled that the Appellant provided sufficient proof of receiving the services and that proof of payment is not a requirement under Section 17 of the VAT Act.
Outcome
The Appeal is allowed, the objection decision is set aside, and each party bears its own costs.
Orders
- The Appeal be and is hereby allowed.
- Respondent’s objection decision be and is hereby set aside.
- Each party to bear its own costs.
Authorities cited
Legislation (2)
- Value Added Tax Act, 2013
- Companies Act 2015
Cases cited (1)
- Commissioner of Domestic Taxes v Metoxide Limited (Income Tax Appeal E100 of 2020) (20211 KEHC 3 (KLR)
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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