WESTERN SELECTION DEVELOPMENT COMPANY LTD. vs. COMMISSIONER OF INCOME TAX [1962]DLHC1734

Date	1962-06-30
Suit No.
Citation No.	[1962]DLHC1734

OLLENNU J.

E. AKUFFO-ADDO FOR THE APPELLANTS.

QUASHIE-SAM FOR THE RESPONDENT (COMMISSIONER OF INCOME TAX).

[1962]DLHC1734
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">WESTERN SELECTION DEVELOPMENT COMPANY LTD. <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">vs.<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">COMMISSIONER OF INCOME TAX <o:p></o:p>[HIGH COURT, ACCRA]<o:p></o:p>[1962] 1 GLR 547<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:31.0pt 31.0pt 1.0pt 31.0pt;mso-border-shadow:yes">

DATE:<span style="font-size:10.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0"> 30TH JUNE, 1962.<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

E.
AKUFFO-ADDO FOR THE APPELLANTS.<o:p></o:p>

QUASHIE-SAM
FOR THE RESPONDENT (COMMISSIONER OF INCOME TAX).<o:p></o:p>

</div>CORAM: <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

OLLENNU, J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF
OLLENNU, J.<o:p></o:p>This matter came before the court under section 58 of the Income
Tax Ordinance1(1) by way of appeal against assessment for the years 1954-55 to
1959-60 raised by the Commissioner of Income Tax in respect of certain payments
made to the appellants by the Bremang Gold Dredging Company Ltd., the
commissioner having refused upon application of the appellants to amend the
said assessments.<o:p></o:p><o:p>&nbsp;</o:p>The payments in question were made to the appellants in pursuance
of an agreement contained in clause 3B of a deed of assignment between the
appellants as vendors and the said Bremang Gold Dredging Company Ltd. as
purchasers. The said deed is exhibited to the notice of appeal as exhibit WSD.
The reason the commissioner gave for his refund to amend the assessments on the
said payments is that the payments were Ghana income (being income derived from
land situate in Ghana), and were therefore subject to Ghana tax.<o:p></o:p>Proceedings in income tax appeals brought under section 58 of the
Income Tax Ordinance are regulated by the Income Tax (Appeals to the High
Court) Rules2(2) made under section 58(10) of the Ordinance. Rule 7(1) and (2)
the said rules read:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“7 (1) The Registrar shall cause a copy of the grounds of appeal
to be served upon the Commissioner. (2) Within fifteen days of the service of
the grounds of appeal, the Commissioner shall file in the Court his reply,
which shall be signed by him or his advocate and shall set forth in paragraphs
consecutively numbered a concise statement of the facts and any points of law
upon which he intends to rely in rebuttal of the grounds of appeal.”<o:p></o:p>It is provided by rule 9 that:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“9 (1) Subject to the express provisions of section 56 of the
Ordinance and of these Rules, the practice and procedure of the Court in
relation to an appeal under the provisions of these Rules shall be assimilated
as nearly as may be to the practice and procedure of the Supreme Court in the
exercise of its civil jurisdiction. Without prejudice to the generality of the
foregoing provisions of this paragraph, the Rules of the Supreme Court
specifically referred to in the Schedule to these Rules shall apply, with such
modifications as may be necessary to render them conveniently applicable, to an
appeal under the provisions of these Rules. (2) For the purpose of the
application of the provisions of this Rule, the appellant and the Commissioner
shall be deemed to be plaintiff and defendant respectively.”<o:p></o:p><o:p>&nbsp;</o:p>By virtue of those rules, notice and grounds of appeal and the
reply to the notice form the pleadings and evidence in the matter, and serve as
proceedings upon which the appeal is to be determined, and are governed by the
same principles which regulate proceedings in civil cases in the High Court.
The hearing of the appeal proceeds entirely on the issues of law and fact
raised in those pleadings, i.e. the appellants’ notice and grounds of appeal,
and the commissioner’s reply thereto.<o:p></o:p><o:p>&nbsp;</o:p>To the notice and grounds of appeal filed by the appellants, the
Commissioner of Income Tax filed a reply and raised three distinct defences or
answers:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">