JUDGMENT

Ahmad Kamal Md Shahid J:

Introduction

[1] This is an appeal (encl 1) by the Appellant by way of Case Stated against the Deciding Order of the Special Commissioners of Income Tax (SCIT) dated 10 February 2017 according to para 34 of Schedule 5 of the Income Tax Act 1967 ( ITA ).

[2] The SCIT had made the following decision:

2.1. The Appellant's disposal of properties, namely:

a. Block A (A-3A-G, A-3A-1 & A-3A-2); and

b. Block B (B-23A-G, B-23A-1 & B-23A-2)

(the subject property)

are subject to income tax under s 4(a) of the ITA and therefore not under Capital Gain under Real Property Gains Tax Act 1976 ( RPGTA )

[3] Being dissatisfied with the determination of the SCIT, the Appellant filed a notice of appeal on 19 April 2017. The SCIT issued a Case Stated on 29 May 2020 for the opinion of the High Court on whether the determination of the SCIT was correct in law.

[4] After the hearing, I dismissed the Appellant's appeal in encl 1. I will now set out the grounds of my judgment.

Background Facts

[5] The established facts found by the SCIT are adopted with and/or without modification from pp 7 to 21 of the Case Stated and are as follows:

i. The Appellant was incorporated on 16 March 2