Back
Next 
2013 MarsdenLR 2355
HIGH COURT MALAYA KUALA LUMPUR
KETUA PENGARAH HASIL DALAM NEGERI – Appellant
Versus
FIRGOS (MALAYSIA) SDN BHD – Respondent
[Civil Appeal No: R2-14-9-09/2012]
Reinvestment allowance under the Income Tax Act must consider functional relevance of all factory areas, including non-production spaces, not limited to production areas only.
Headnote:(A) Income Tax Act 1967 - Paragraphs 1, 8(a) and Section 113(2) - Reinvestment allowance - The appellant disallowed claims for reinvestment allowance for the years 2005 and 2007, asserting the respondent was only eligible for allowances related to production area - The Special Commissioners of Income Tax allowed the appeal, determining that all capital expenditures claimed qualified under the Act, including fire-fighting equipment, electrical fittings, and warehouse spaces as integral to manufacturing operations - The imposition of penalties by the appellant was deemed unlawful as the respondent had provided full disclosure. (Paras 1-14)
(B) Legal Principle - The definition of 'factory' includes both production and non-production areas, as determined in previous case law, emphasizing functional relevance in manufacturing activities. (Paras 6-11)
| Table of Content |
|---|
| 1. background of income tax appeal (Para 1) |
[1] The appellant is appealing by way of a case stated dated 4 September 2012 pursuant to paragraph 34 Schedule 5 of the Income Tax Act 1967 ("ITA") against the Deciding Order of the Special Commissioners of Income Tax ("SCIT") dated 4 May 2012.
