Home Bridge Limited v Commissioner of Domestic Taxes (Tax Appeal 43 of 2019) [2021] KETAT 59 (KLR) (23 July 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 59
- Citation
- [2021] KETAT 59 (KLR)
- Decided
- 23 July 2021
AI Summary
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Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision of the Commissioner of Domestic TaxesCoramMAH AT SOMAN E, WILFRED GICHUKI, ROSE WAMBUI N AMU, JOHN KlNYUA WANGARI
Holding
The land cost incurred by the Appellant in purchasing LR. 12715/538 for the construction of Lifestyles Terraces located in Syokimau is allowed. Loan Interest costs, Marketing & Advertising costs, and Start-up costs are disallowed.
Facts
The Appellant, Home Bridge Limited, developed housing estates in Syokimau and Ruiru. The Respondent, Commissioner of Domestic Taxes, issued an additional assessment for taxes, which the Appellant contested.
Issues
- Whether the Respondent was proper in disallowing the land costs
- Whether the Respondent was proper in disallowing the Loan Interest Cost, Marketing and Advertising Cost
- Whether the Respondent was proper in disallowing the Start-up costs
Reasoning
The Tribunal considered the Agreement for Sale, Transfer, and valuation report, and found that the land cost was allowable. The Appellant failed to prove that the start-up costs were administrative costs.
Outcome
Partially merited appeal
Orders
- The land cost incurred by the Appellant in purchasing LR. 12715/538 for the construction of Lifestyles Terraces located in Syokimau is allowed.
- Loan Interest costs are disallowed.
- Marketing & Advertising costs are disallowed.
- Start-up costs are disallowed.
- Each party to bear its own costs.
Authorities cited
Legislation (2)
- Income Tax Act
- Kenya Revenue Authority Act
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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