Chebut Tea Factory v Commissioner of Domestic Taxes (Tax Appeal 1273 of 2022) [2023] KETAT 983 (KLR) (Commercial and Tax) (15 September 2023) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 983
- Citation
- [2023] KETAT 983 (KLR)
- Decided
- 15 September 2023
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TypeTax AppealPostureAppeal from confirmation of assessmentCoramE.N WAFULA, CYNTHIA B. MAYAKA, E NG'ANG'A, RO OLUOCH, AK KIPROTICH & B GITARI
Holding
The Tribunal found that there was no transfer of assets from Chebut Tea Factory Ltd to Kaptumo Tea Factory Ltd as alleged by the Respondent.
Facts
Chebut Tea Factory formed Kaptumo Tea Factory Ltd in 2006 to offload processing of green tea. The Respondent found a transfer of business as a going concern based on changes in assets from 2019/2020 to 2020/2021. The Appellant objected to the assessment and appealed.
Issues
- Whether the Respondent erred in the computation and conrming the assessment on the basis of transfer of business as a going concern.
Reasoning
The Tribunal determined that the Appellant had not failed to apply for amendment of the assessments and that the Respondent's reliance on the figures in the income tax returns was justified.
Outcome
The Respondent's conrmed assessment of Kshs. 49,599,114 was upheld. The Appeal was dismissed with costs to the Respondent.
Authorities cited
Legislation (2)
- Tax Procedure Act
- Companies Act 2015
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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