I) Whether sale of developed real estate property falls under business
income for income tax purposes under See. 3(2)(a).

ii) Whether interest income is a separate source of income for tax
purposes.

The respondent treatment of income from sale of property as business income, instead of treating it as business income as specified I Kenya

Treating interest income as specific source of income (15)(7) (e) of the income tax act.

The appellant pleaded with the committee to find that property sale income was a capital transaction and therefore not subject to income tax

The upshot of the fore., going is that the Sale of the ten (10) units out of
the sixteen (16) resulted in business income and was therefore taxable
. f
under the relevant statutes as highlighted above subject to there being
a gain/profit after considering all the applicable underlying costs.

The Appeal therefore lacks merit and is hereby dismissed.

The Tribunal upholds the tax Assessment of Kshs.12,109,466/= as
contained in the Notice of Amended Assessment for the year of
Income 2009 to 2012 dated 15th August 2014.

The Tribunal directs that each party shall bear its cost