a) Whether the net income derived from the sale of the office
suites by The Appellant is capital gains for purposes of
corporation tax or;
b) Whether the net income from the sale of the office suites were
derived from a venture in the nature of trade and thus
chargeable to corporation tax and if so;
c) Whether part of the interest on those borrowings should be
restricted and disallowed for corporation tax purposes to the
extent of the office suites transferred to a sister concern.

The Appellant in the Memorandum of Appeal prays for the Orders
being: -

THAT the additional assessment plus all penalties and interest be set
aside

The net income arising out of the sale of the office suites is taxable
as profit from a venture in the nature of trade and not as a
realization of capital gains and finds in tl;)e circumstances that the
amount of Kshs.198,846,571/= profit from the sale of the offices
should be brought to charge and interest expense regarding offices
transferred to a sister concern be restricted and disallowed for
corporation tax purposes. Section 2(1) 3 (2)(a