28.Section 89 of the principal enactment is hereby repealed and the following section substituted therefor: -
| 89. Where any sum paid as insurance premium is allowable as an expense incurred in the production of profits or income from any trade, business, profession or vocation, any sum realized under such contract of insurance shall be deemed to be -
| | (a) receipts from such trade, business, profession or vocation if the sum so realized is in respect of stock in trade or loss of profits or any other sum not referred to in sub-paragraph (b) or (c) of this section; | | |
| | (b) an amount realized from the disposal of property, if the sum so realized is in respect of a capital asset on which an allowance for depreciation, with- in the meaning of subsection (7) of section 23, has been granted, and accordingly, the provisions of sub section (3) of that section shall apply to, and in relation to, that amount: | | |
| | (c) an amount realized from the change of ownership of property, if the sum so realized is in respect of a capital asset on which an allowance for depreciation within the meaning of subsection (7) of section 23 has not been granted and accordingly, the provisions of section 7 shall, apply to, and in. relation to, that amount, " | | |
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Sri Lanka Consolidated Acts