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The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
Panafrican Energy Tanzania Ltd vs Commissioner General TRA (Civil Appeal No.192 of 2018) [2018] TZHC 41; (04 July 2018) 
Income Tax Taxation law Tax Deduction Taxation law CL IndexThe appellant, a limited liability company dealing with the business of production and supply of natural gas, was involved in a tax dispute with the respondent.
The main issue for determination was whether or not the tribunal erred in upholding the board’s interpretation of s17 of the Income Tax Act (ITA) thereby agreeing with the disallowance by the respondent, of depreciation allowance sought to be deducted by the appellant from the income.
The court held that a person is entitled to depreciation allowance only upon meeting the two conditions stipulated in s17 of the ITA. The depreciable assets must be owned and employed in the production of the income in question.
The court stated that although the expenditure incurred in the production of the income from the business of natural resource prospecting, exploration and development shall be treated as if it were incurred in securing the acquisition of an asset, hence entitling the person to depreciation allowance on that asset, such an asset must have been in production of the income. The deduction of depreciation is based on capped life of the asset as from the first year of the production of the income.
In the result the appeal was dismissed as it was devoid of merit.