MB VEST SDN BHD Ketua Pengarah Hasil Dalam Negeri

MB VEST SDN BHD Ketua Pengarah Hasil Dalam Negeri

Preliminary objection upheld: the supplemental affidavit raised an unpleaded 'time-barred' issue and was disallowed. Judicial review dismissed because an adequate domestic remedy before the Special Commissioners of Income Tax existed and had been invoked; no jurisdictional error or plain illegality justified bypassing SCIT. On the merits the disposals evidenced badges of trade and were taxable as business income under s.4(a) Income Tax Act 1967; the 15% penalty under s.113(2) was lawfully imposed. No stay granted. Costs awarded to Respondent.

Citation
JA-25-2-01/2024 (Mahkamah Tinggi)
Parties
Applicant/pemohon: MB Vest Sdn Bhd; Respondent/responden: Ketua Pengarah Hasil Dalam Negeri
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 September 2025
Case Number
JA-25-2-01/2024 (Mahkamah Tinggi)
Procedural Posture
Judicial Review (semakan Kehakiman) / Judgment on Merits and Preliminary Objection (1 December 2025)
Outcome
Application for judicial review dismissed in full
Legal Topics
Classification of Income Vs Capital, Badges of Trade, Judicial Review Forum Non Conveniens as to Domestic Remedies (scit), Preliminary Objection on Unpleaded Issues, Time Barred Assessment, Penalty Under S.113(2) Income Tax Act 1967, Stay Application Against Tax Assessment
Source Language
Malay/English
Tax Law Administrative Law Constitutional Law Civil Procedure Classification of Income Vs Capital Badges of Trade Judicial Review Forum Non Conveniens as to Domestic Remedies (scit) Preliminary Objection on Unpleaded Issues +3 more

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Parties

MB Vest Sdn Bhd

Applicant/pemohon

Ketua Pengarah Hasil Dalam Negeri

Respondent/responden

Procedural Posture

Judicial Review (semakan Kehakiman) / Judgment on Merits and Preliminary Objection (1 December 2025)

Legal Issues

  1. 1 Whether judicial review is permissible where domestic remedy before Special Commissioners of Income Tax (SCIT) exists and has been invoked
  2. 2 Whether disposal of 72 apartment units is taxable under s.4(a) Income Tax Act 1967 (business income) or under Real Property Gains Tax Act 1976 (capital gains)
  3. 3 Whether penalty under s.113(2) Income Tax Act 1967 was lawfully imposed

Ratio Decidendi

Preliminary objection upheld: the supplemental affidavit raised an unpleaded 'time-barred' issue and was disallowed. Judicial review dismissed because an adequate domestic remedy before the Special Commissioners of Income Tax existed and had been invoked; no jurisdictional error or plain illegality justified bypassing SCIT. On the merits the disposals evidenced badges of trade and were taxable as business income under s.4(a) Income Tax Act 1967; the 15% penalty under s.113(2) was lawfully imposed. No stay granted. Costs awarded to Respondent.

Court Disposition

Application for judicial review dismissed in full

Orders

  • Preliminary objection upheld and supplementary affidavit disallowed
  • Permohonan Semakan Kehakiman (Judicial Review) dismissed