The National Mutual Life Association Of Australasia, Ltd., V. The Commissioner Of Income Tax: Case Stated

1948 Present : Jayetileke S.P.J. and Canekeratne J.
 
THE NATIONAL MUTUAL LIFE ASSOCIATION OF
AUSIRALASIA, LTD., Appellant, and THE COMMISSIONER
OF INCOME TAX, Respondent.
 
S. C. 69-Income Tax : Case Stated.

Income Tax-Ascertainment of profits of insurance companies-Revenue and capital expenditure-Interpretation of section 42 of the Income Tax Ordinance (Capl 188).
 
The National Mutual Life Association of Australasian, Ltd., carrying on life insurance business in Ceylon through a branch office in Colombo, established a Staff Superannuation Scheme early in 1917, and paid pensions to its employees in accordance with the provisions of that Scheme. It contributed sums out of its profits and the employees made contributions under that Scheme. The contributions made by the Association to the fund of this Scheme amounted up to the early part of 1944 to a sum of about £65,000. About February, 1944, a valuation of the Assets and Liabilities of the Superannuation Fund was made and a deficit of actual liabilities over assets of £150,000 was disclosed. The Associat

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