The Court of Appeal dismissed LHDN’s appeal against an order directing it to refund tax paid by Lush Development Sdn Bhd.PUTRAJAYA: The Inland Revenue Board (LHDN) must refund tax collected on compensation paid for the compulsory acquisition of private land, after the Court of Appeal rejected its attempt to limit the effect of a landmark Federal Court ruling.
A three-member bench chaired by Justice Azizul Azmi Adnan, who sat with Justices Ong Chee Kwan and Radzi Harun, dismissed LHDN’s appeal against an order directing it to refund tax paid by Lush Development Sdn Bhd.
Ong, who delivered the judgment, said the Federal Court’s 2022 ruling declaring Section 4C of the Income Tax Act 1967 unconstitutional applied retrospectively and was not confined to the company that brought the case.
