Whether land not used for its original purpose because it was not permitted to change its form and quality is non-business land of a corporation

If land acquired to newly construct a business place is designated as a residential area and a scenic zone, and it is not used for the new construction of a business place due to a lack of permission to change the form and quality of part of the land, there are justifiable reasons for not using the land for its proper purpose. Therefore, the land is excluded from non-business land of a corporation under Article 84-3 (1) 3 of the Enforcement Decree of

Article 84 (1) of the Enforcement Decree of the Local Tax Act

Supreme Court Decision 78Nu442 Delivered on February 13, 1979

Honam Food Co., Ltd.

Attorney Kang Shin-young et al., Counsel for the plaintiff-appellant

Gwangju High Court Decision 84Gu141 delivered on October 24, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

As determined by the court below, since the original land acquired by the plaintiff in order to newly build a new place of business is designated as a residential area and a scenic zone, and 2147 square meters of the original land among the above land cannot be used for new construction of a new place of business due to a change in the form and quality, there is a justifiable reason that the plaintiff could not use the land for its original purpose. Therefore, this land is excluded from non-business land of a corporation subject to taxation of acquisition tax under Article 84-3 subparagraph 3 of the Enforcement Decree of

In the same purport, the decision of the court below that the land of this case is not a non-business land of the plaintiff corporation is just and there is no error in the misapprehension of legal principles as to the Local Tax Act such as theory of lawsuit

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kang Jin-young (Presiding Justice)