Commissioner General of Inland Revenue vs. Seylan Development P L C – CA TAX APPEAL NO. 10/2014-2017

In the case between The Commissioner General of Inland Revenue, Department of Inland Revenue, Colombo (Appellant) and Seylan Development PLC, Colombo (Respondent), the court addressed whether the Tax Appeals Commission erred in its interpretation of section 32(5)(b) of the Inland Revenue Act No. 10 of 2006 regarding the deductibility of losses carried forward from periods prior to the commencement of a Board of Investment-conferred tax holiday. It was held that losses incurred before the BOI-certified tax holiday period may be carried forward and deducted under the statute, reaffirming the principle that only the BOI has the authority to certify the commencement of the tax exemption period. The decision relied on the statutory criteria of the Inland Revenue Act and the specific terms of th