Bhat v Commissioner of Domestic Taxes (Tax Appeal 1383 of 2022) [2024] KETAT 158 (KLR) (9 February 2024) (Judgment)

Facts

The Appellant, Jayantilal Ramnillal Bhat, is a sole proprietor selling potato crisps in Thika, Kenya. The Respondent, Commissioner of Domestic Taxes, assessed the Appellant for VAT of Kshs. 412,044.00 for the period February 2017 to June 2017. The Appellant objected to the assessment, but the Respondent rejected the objection. The Appellant then appealed the decision.

Issues

1. Whether the Respondent’s Objection Decision dated 21st October 2022 is proper and lawful.
2. Whether the Respondent erred in issuing the Appellant with VAT Assessment.

Reasoning

The Tribunal notes that the Respondent issued an assessment order against the Appellant for VAT on 26th March 2018, and the Appellant objected to the demand notice on 8th January 2021. The Tribunal further notes that the Respondent allowed the Appellant’s late objection application and proceeded to render an objection decision, which was rendered more than 60 days from the date of the Appellant’s objection. The Tribunal finds that the Respondent was outside time and the Appellant’s objection stood allowed by operation of the law.

Outcome

The Tribunal upholds the Appellant's appeal and finds that the Respondent's objection decision was rendered outside statutory timelines.

Authorities cited