Lanka Walltiles PLC v. The Commissioner General of Inland Revenue – CA TAX/0010/2015-2015

In the case between Lanka Walltiles PLC and the Commissioner General of Inland Revenue, the court addressed the classification of commission income earned by Lanka Walltiles PLC from its subsidiary for the 2008/2009 assessment year. It was determined that the commission income did not form part of the primary business activity and was properly assessed as “income from any other source” rather than “business income” under the provisions of the Inland Revenue Act. The findings established that the failure to maintain separate accounts for diversified business activities, as expressly required by section 106(11), precluded concessionary tax treatment of the commission. The judgment clarified that the non-obstante clause in section 52 does not override explicit statutory requirements. This dec