Ceylon Steel Corporation Ltd. vs. Commissioner General of Inland Revenue – sllr 2015 volume 1 page 149

In the case between Ceylon Steel Corporation Ltd. and the Commissioner General of Inland Revenue, the court addressed the entitlement of the appellant to an income tax exemption on profits earned from the import and sale of steel wire stirrups under Agreement No. 72 with the Board of Investment. It was held that the tax exemption conferred by clause 10(1) of the agreement was limited to activities associated with the modernization and upgrade of the appellant’s factory at Athurugiriya and did not extend to unrelated activities such as the import and sale of stirrups. The principle established reaffirms that statutory exemptions must be interpreted strictly, and that the Board of Investment lacks authority to alter the scope of tax obligations under such agreements. This determination was g