COMMISSIONER GENERAL OF INLAND REVENUE

COMMISSIONER GENERAL OF INLAND REVENUE

Vs.

CEYLON SHELL FLOUR LTD

COURT OF APPEAL
DE SILVA, J.
KARUNARATHNA, J.
CA/TAX/20/2014
TAC/IT/011/2013
SEPTEMBER 24, 2019

Case Stated-Tax Appeals Commission-Inland Revenue Act No. 10 of 2006, as amended, sections 16(2), 163(3), 163(5), 164, 106, 217- Time bar-Effect of a statutory amendment on matters of procedure--Distinction between "Assessment" and "Notice of Assessment"

The respondent company's return of income for the assessment year 2006/2007 filed on 03.04.2008 was rejected by the assessor by letter dated 26.03.2011 on the basis that coconut shell flour is not a conversion

of produce referred to in the provisions of section 16(2)(a) of the Inland Revenue Act, No. 10 of 2006, as amended.

The respondent appealed inter alia on the basis that the assessment was time barred. The Tax Appeals Commission (TAC) allowed the appeal holding that the assessment was time barred but further held that the production of coconut shell flour made out of coconut shells is not an agricultural produce in terms of section 16(2)(b).

Both parties were dissatisfied with this order and the TAC transmit

Click Here to Read the rest of this document