Njoroge v Commissioner of Investigations & Enforcement (Appeal 26 of 2018) [2021] KETAT 157 (KLR) (21 May 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 157
- Citation
- [2021] KETAT 157 (KLR)
- Decided
- 21 May 2021
The Respondent erred in deeming the Appellant’s net bankings as income and in assessing rental income separately.
Facts
The Appellant, Lucyanne Wanjiru Njoroge, was investigated by the Respondent, the Commissioner of Investigations & Enforcement, for the period of income 2011 to 2015. The Appellant was asked to provide books of accounts, records, and documentation. The Respondent reviewed the data provided by the Appellant and netted off the bank deposits, loan proceeds, and inter-account transfers.
Issues
- Whether the Respondent erred in deeming the Appellant’s net bankings as income.
- Whether the Appellant under declared rental income for the years under assessment.
Reasoning
The Respondent netted off the loan proceeds and funds transfer, assuming all deposits and credits in the Appellant’s accounts were income. The Appellant clarified that some deposits were not income, but the Respondent did not heed these clarifications. The Respondent also brought soft loan refunds to charge, which the Appellant had provided evidence of.
Outcome
Affirmed
Authorities cited
Legislation (1)
- Income Tax Act Cap 470 of the Laws of Kenya
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