Case No 11398

• Jurisdiction: South Africa
• Judge: Mbha J
• Judgment Date: 03 May 2005
• Docket Number: 11398
• Hearing Date: 18 November 2004
• Citation: 2005 JDR 1161 (JSpCrt)

Mbha J:

[1] This is an appeal referred to this court in terms of section 83A(13)(a) of Income Tax Act, Act 58 of 1962 ("the Act"), as amended, which was heard de novo in terms of the provisions of section 83A(14) of the Act.

[2] In his statement of grounds of appeal dated 18 November 2004 the appellant seeks the following order:

"5. The appellant pray (sic) to this Tax Court to direct the Commissioner for South African Revenue Service (SARS) to condone the appellant late application (sic) in respect of 1991-1992 tax years.

6. The appellant pray (sic) to this Court to direct the Commissioner for South African Revenue Service (SARS) to reopen the appellant assessment (sic) in respect of 1993-1994 tax years."

[3] The appellant is a taxi owner/permit holder residing at T.

[4] The respondent raised assessments against the appellant for the years of assessment 1991 to 1995 as follows:

4.1 The respondent raised revised assessments for the 1991 to 1992 tax years against the appellant to include certain undeclared interest income and disallowed certain expenses claimed by the appellant in his tax returns. The assessments amounted to R19 329.46 for the 1991 tax year and R11 262,30 for the 1992 tax year.

4.2 On 2 July 1993 the appellant lodged an objection in writing against the aforementioned assessments. In support of the objection a letter by the "T" United Taxi Association was submitted in which the respondent was advised that the appellant was only a permit holder of eight taxi permits four of which were donated to his brothers while the other four were rented out at either R400,00 or R200,00 a month. It was also alleged that the money which was in the appellant's bank account in fact belonged to a syndicate which appellant and other people not mentioned had formed.

4.3 On 21 March 1994 the respondent requested certain information and/or documentation in respect of the objections and proof of expenditure claimed.

4.4 The requested information and/or documentation was not furnished and on 4 July 1994 the respondent accordingly disallowed the objection.

4.5 On 20 March 2000 the appellant filed a new objection and

2005 JDR 1161 p2

Mbha J

simultaneously applied for condonation for the late filing of the objections against the assessments in respect of all the years of assessment namely 1991 to 1995.

4.6 On 19 September 2000 the respondent disallowed the objections and refused to grant the condonation requested.

[5] On 1 July 1995 the respondent raised revised assessments disallowing certain expenses claimed by the appellant in respect of the 1993 to 1994 tax years. These assessments amounted to R34 923,31 for the 1993 tax year and R36 812,97 for the 1994 tax year.

[6] On 15 March 1996 the appellant objected against the assessments on the grounds that the expenses were incurred in the production of...