The Wheel Works (Pvt) Ltd vs. Commissioner General of Inland Revenue – CA TAX NO. 11/2013-2023

In the case between The Wheel Works (Pvt) Ltd (Appellant) and the Commissioner General of Inland Revenue, Department of Inland Revenue (Respondent), the court addressed the issue of the proper computation of taxable income derived from the disposal of capital assets under the Inland Revenue Act No. 10 of 2006. The holding established that proceeds from the sale of capital assets, with adjustments made for any depreciation allowance claimed or not claimed, are chargeable to tax under section 25(3)(a). The principle reaffirmed was that the taxability is not negated by the mere omission to claim a depreciation allowance. The court also clarified that the BOI Agreement’s exemptions do not extend to gains made from the disposal of capital assets. This decision relied on the statutory language o