Lalji Makanji Karanja v. The Commissioner of Income Tax Misc. Civ. App. 13-D-66, 11/11/67, Georges C. J.

Lalji Makanji Karanja v. The Commissioner of Income Tax Misc. Civ. App. 13-D-66, 11/11/67, Georges C. J.

Appellant had purchased various parcels of land in Kenya and Tanzania, some of which he developed. This action involves a large tract of land which he sold in several parcels at a profit. He had not actually developed this plot.

            Held: (1) This appeal was in the nature of a rehearing of a decision by the Commissioner of Income Tax, adverse to the appellant. By virtue of the East African Income Tax Amendment Act, 1958, sec. 113(c), the onus of proving that the assessment objected to was excessive rested on appellant. (2) Appellant argued that this was an isolated transaction, and that he bought the land initially to build warehouses thereon. Had this been so, the gain would not have been others, of acquiring and selling land so it was in effect stock in trade, and subject to tax if sold at a profit. He had bought and sold some 15 other parcels in the last two decades. (3) There also was evidence that appellant had attempted on several occasions to obtain building permits to develop the land for housing. Accordingly his again on the sale of the land was taxable.