Ceyspence (Pvt.) Ltd. (under Liquidation) vs. The Commissioner General of Inland Revenue – CA TAX/5/2013-2013

In the case between Ceyspence (Pvt.) Ltd. (under Liquidation) and the Commissioner General of Inland Revenue, Department of Inland Revenue, the court addressed whether proceeds from the disposal of the appellant’s sole asset during the assessment year 2007/2008 were exempt from taxation under the agreement with the Board of Investment (BOI) and relevant tax statutes. It was determined that only profits and income arising directly from the specific business activity agreed upon with the BOI were tax-exempt, and not proceeds from the sale of capital assets. The court upheld the interpretation that the Inland Revenue Act and the BOI agreement did not extend exemption to asset disposal proceeds, finding the Tax Appeals Commission (TAC) had not erred in law. This decision confirms that, under S