Commissioner for the South African Revenue Service v Dunblane (Transkei) (Pty) Ltd (468/99) [2001] ZASCA 90; 2002 (1) SA 38 (SCA); 64 SATC 51 (17 September 2001)

Commissioner for the South African Revenue Service v Dunblane (Transkei) (Pty) Ltd (468/99) [2001] ZASCA 90; 2002 (1) SA 38 (SCA); 64 SATC 51 (17 September 2001)

The Supreme Court of Appeal held that the determination of Dunblane's assessed loss for the 1992 year of assessment did not involve the exercise of a discretionary power by the officer concerned under section 3(2) of the Income Tax Act 58 of 1962. The phrase 'amount, as established to the satisfaction of the...

Source-derived case information.

Citation
[2001] ZASCA 90
Parties
Appellant: Commissioner for the South African Revenue Service; Respondent: Dunblane (Transkei) (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
17 September 2001
Case Number
468/99
Procedural Posture
Civil Appeal / Appeal From the Natal Provincial Division
Outcome
Appeal upheld with costs, including costs of two counsel. Condonation for late filing of the notice of appeal granted; respondent awarded costs for the condonation application.
Judges
Streicher, Hefer, Harms, Scott, Mthiyane
Legal Topics
Income Tax Assessment, Discretionary Power, Assessed Loss, Statutory Interpretation
Tax Law Income Tax Assessment Discretionary Power Assessed Loss Statutory Interpretation

Source-derived case record

Summary, issues, holding and outcome

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Parties

Commissioner for the South African Revenue Service

Appellant

Dunblane (Transkei) (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From the Natal Provincial Division

Legal Issues

  1. 1 Whether the officer concerned exercised a discretionary power under section 3(2) of the Income Tax Act 58 of 1962 when determining the assessed loss for the 1992 year of assessment.
  2. 2 Whether the phrase 'amount, as established to the satisfaction of the Secretary' in section 20(2) confers a discretionary power on the Secretary.
  3. 3 Whether the withdrawal or amendment of the assessment after two years was prohibited by section 3(2) of the Act.

Ratio Decidendi

The Supreme Court of Appeal held that the determination of Dunblane's assessed loss for the 1992 year of assessment did not involve the exercise of a discretionary power by the officer concerned under section 3(2) of the Income Tax Act 58 of 1962. The phrase 'amount, as established to the satisfaction of the Secretary' in section 20(2) refers to the factual establishment of the amount, not the exercise of discretion. The deduction of the purchase price of shares was allowed under section 11(a) as actual expenditure incurred, which does not confer discretion on the Secretary. Therefore, the withdrawal or amendment of the assessment after two years was not prohibited by section 3(2), and...

Court Disposition

Appeal upheld with costs, including costs of two counsel. Condonation for late filing of the notice of appeal granted; respondent awarded costs for the condonation application.

Orders

  • The appellant’s application for condonation of the late filing of his notice of appeal is granted.
  • The appellant shall pay the costs of the condonation application.