Mohamed Dzaiddin J

This is an appeal by the Revenue by way of case stated against the decision of the Special Commissioners of Income Tax under para. 34 of Schedule 5 of the Income Tax Act 1967 made on April 28, 1983 on the ground that it was wrong in law. The Special Commissioners held that the requisition dated May 16, 1980 issued by the appellant for the real property gains tax amounting to $11,989.40 for the year of assessment 1978 under section 12 of the Real Property Gains Tax Act, 1976 ("the Act") for properties known as holdings 1579 and 1580 of section 4, Bandar Butterworth, District of Province Wellesley North ("the subject properties") was wrong. Their finding is that pursuant to para. 28 of Schedule 2 of the Act the subject properties were deemed to be acquired by the respondent prior to January 1, 1970. They are also of opinion the acquisition value is the market value as at that date, and therefore the rate of tax to be applied in the circumstances of the case is only 5 percent.

The facts as found by the Commissioners are as follows:

"i) The respondent is the administrator of the estate of Cheah Poh In @ Cheah Poh Im (who died intestate in December, 1941) pursuant to