JUDGMENT

Hamid Sultan Abu Backer JC:

[1] This is my judgment in respect of the appeal by the appellant by way of case stated, pursuant to para. 34 sch. 5 of the Income Tax Act 1967 (ITA 1967), against the decision of Special Commissioners who had ruled that: (i) the respondent's investment in Ngiu Kee Corporation (M) Bhd. (Ngiu Kee) was made as a long term investment. (ii) the respondent was not at any time a trader in shares nor were the shares in Ngiu Kee acquired as part of the respondent's trade; (iii) the respondent's investment was not undertaken as an "adventure in the nature of trade", for a profit seeking motive.

[2] The parties rely on the following authorities:

(i) Chua Lip Kong v. Director-General of Inland Revenue (ii) Edwards v. Bairstow & Harrison 36 TC 207 (iii) Lower Perak Co-operative Housing Society Bhd v. Ketua Pengarah Hasil Dalam Negeri, [1994] 2 MLJ 713 (iv) NYF Realty Sdn. Bhd. v Comptroller of Inland Revenue, [1974] 1 MLJ 182 (v) W Holdings Private Limited v. The Comptroller of Income Tax [1992] 1 MSTC 5,135 (vi) PUSB v. DGIR [1995] 4 BLJ 281 (vii) Ketua Pengarah Hasil Dalam Negeri v. Penang Realty Sdn Bhd & Another Appeal, [2006] 3 MLJ 597 (viii) ALF Proper