RULING

(ENCL. 73)

The plaintiff's claim against the defendant is for RM25,036,323.98 being the balance of unpaid tax for the year of assessment 1997. The defence of the defendant is basically that the assessment was wrongly made and it counterclaimed for a declaration that its capital gain are not taxable and for return of money mistakenly paid by them. The plaintiff obtained summary judgment from the learned Deputy Registrar and the defendant filed an appeal to Judge in Chambers against it. The defendant had also filed an appeal to the Special Commissioners of Income Tax in Putrajaya against the assessment of the tax for the Year of Assessment 1997. The Special Commissioners allowed the appeal declaring that RM210.6 million for the 1997 Year of Assessment was not taxable. The plaintiff then filed an appeal to the High Court in Shah Alam.

Meanwhile both plaintiff and defendant applied for stay of the proceedings before this Court but the defendant withdrew their application and parties proceeded to argue the plaintiff's application for stay of proceedings before YA Datuk Lau Bee Lan. Her Ladyship allowed the application for stay pending the disposal of the plaintiff's appeal a