18. The following new section is hereby inserted - immediately after section 124 of the principal enactment and shall have effect as section 124A of that enactment :-
| 124A.
| | (1) Any person or partnership from whose interest income the income tax is deductible by a bank or financial institution, or a company which issues any corporate debt security in accordance with the provisions of section 122A or 122B, as the case may be. and such interest income will form part of the assessable income of such person or divisible profit or income of the partnership, as the case may be, for any year of assessment, may. if the amount of income tax payable by him or the relevant partners for such year of assessment is less than the income tax deductible during that year of assessment under section 122A or 122B, make an application to the Commissioner-General in such form and containing such particulars as may be specified by the Commissioner-General requesting that a direction be issued to that bank or financial institution or any company which issues corporate debt security, to make the necessary adjustments in the deduction of income tax in that year of assessment. | | |
| | (2) The provisions of subsection (2). subsection (3). and subsection (4) of section 124 shall mutatis mutandis apply to and in relation to any direction issued under subsection (1). | | |
| | (3) The Commissioner-General shall not issue a direction as provided for in subsection (1) of this section unless, such excess deduct ion of the income tax arises as a result of losses incurred by such person or partnership which are deductible under section 29 and such amount of losses at the commencement of the relevant year of assessment exceeds the estimated total statutory income for that year on the basis of the preceding year excluding the relevant estimated interest income which is subject to the deduction of income tax under section 122A or 122B not such interest income which is subject to the income tax deduction is exempt from income tax. | | |
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Sri Lanka Consolidated Acts