5. The following new section is hereby inserted immediately new section 17J of the principal enactment, and shall have effect of subsection 17E of the principal enactment :-
| 17K.
| | (1) The profits and income attributable to the new capital expenditure of any undertaking for the production or manufacture of any goods of commodities or for the provision of any service and referred to in subsection (2), shall be exempt from income tax for a period of five years reasoned from the relevant date. | | |
| | (2) The provisions of subsection (1) shall apply in any undertaking which-
| | | (a) has incurred, within a period of twelve months commencing from the relevant date, new capital expenditure of not less than ten million rupees in amount on the accusation and utilization of advanced property ; and |
| (b) is approved by the Minister to be an undertaking to which this section applies, by order published in the Gazette on or before March 31, 1997, on an application in writing in that behalf made on of before September 30 1996 ; and |
| (c) employs, as at the relevant date or not less than six months from such date, and continues to employ, until the expiry of the said period of five years not less than fifty employees more than averages number of employees, employed by that undertaking during the year ending on the relevant date : |
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| (3) For the purpose of this section -
| | (a) the expression " profits and Income attributable to the, new capital expenditure in relation to any year of assessment and to any undertaking means the excess of :-
| | | (i) the profits and income, within the meaning of paragraph (a) of section 3 (other than any profit and income from the sale of any capital assets or from the purchase any resale of any goods or commodities) of that undertaking for that year of assessment reduced by the appropriate per centum specified in the Schedule to this paragraph as being applicable for that year of assessment, over, |
| (ii) the annual average of such profits and income of that undertaking as are referred to in sub-paragraph (1), such average being computed for a period of three years immediately preceding the relevant date where the undertaking has been carrying on business for a period of three years or mere prior to the relevant date or for the entire period during which it has been Carrying on business, where the undertaking has been carrying on business for a period of less than three years prior to the relevant date , |
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| (b) the expressions on "relevant date" means the first day of any calendar month not earlier than November 1995, and not later than April 1 ,1997, and selected by that undertaking and notified to the Commissioner or General in written not later than thirty days from the last date of that month : |
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| (c) the expression. "new capital expenditure" means expenditure incurred by the undertaking in the purchase of any new-
| | (i) plant, machinery, fixtures or equipment ; and | | |
| | (ii) asset not included in sub-paragraph (1), (other than any land or building for the acquisition and utilisation of advanced technology ; | | |
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Sri Lanka Consolidated Acts