In the event that a real estate sales contract has been terminated, whether the disposition imposing capital gains tax on the seller is appropriate

Where a sales contract for real estate is automatically terminated in accordance with the incidental conditions of the sales contract due to the cancellation of the contract or the payment of intermediate payments and remainder, the disposition imposing capital gains tax on the premise that the seller has income from the transfer of such real estate is unlawful, since the effect of the sales contract remains invalid and only the issue

Article 23 of the Income Tax Act

Plaintiff Kim Yong-sung et al., Counsel for the plaintiff-appellant

Daejeon director of the tax office

Seoul High Court Decision 84Gu1133 delivered on July 5, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

In light of the records, the court below's finding of facts by the court below as to the process of selling and selling the real estate in this case owned by the plaintiff between the plaintiff and the non-party 1 and the non-party 2 after they were returned to the plaintiff's name and the process of selling and selling the real estate in this case shall be justified and there is no violation of law such as violation of rules of evidence, such as theory of lawsuit, and if facts exist, the sales contract for the real estate in this case between the plaintiff and the non-party 1 shall be deemed to have been terminated by agreement and null and void. In addition, since the sales contract for the real estate in this case between the plaintiff and the non-party 2 did not pay the intermediate payment and the balance, it shall not be deemed that the plaintiff had income from the transfer of the real estate in this case under the conditions of the sales contract. In this regard, the court below's revocation of the tax disposition in this case on the premise that the plaintiff had income from such transfer is justified, and there is no error of law such as incomplete deliberation, etc. as

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 Choi Jae-ho (Presiding Justice)