JUDGMENT

Lord Oliver of Aylmerton:

This is an appeal from a judgment dated 14 August 1982 of the Federal Court of Malaysia (Raja Azlan Shah CJ, Salleh Abas FJ and Abdoolcader J) allowing an appeal by the respondent, the Comptroller-General of Inland Revenue, from an order made by Harun J in the High Court on 20 March 1979 which had allowed the appellant's appeal by way of Case Stated by the Special Commissioners of Income Tax who had dismissed the appellant's appeal against two notices of additional assessment dated 1 July 1967 in respect of the years 1963 and 1964 respectively.

As regards the year 1963, the appellant challenged the inclusion in its income tax assessment of a sum of RM2,622,510 representing the profit on the sale by the appellant of certain land forming the site of a hotel, which profit the Revenue claimed to be of a revenue nature. As regards the year 1964, it challenged the inclusion of a sum of RM4,201,000 representing the profit on the sale of the appellant's rights under a lease and a repurchase agreement, a sum of RM494,000 representing its profit on the sale of shares in a subsidiary company to a public company, Merlin Hotels Malaysia Limited, and a sum o