12. The following section is hereby inserted in the principal Act immediately after the heading "L- APPROVED INVESTMENTS " and shall haw effect as section 68A of that Act: -
| 68A.
| | | (2) Where in the year preceding any year of assessment commencing on or after April 1, 1967, a company or a body of persons makes an approved investment, then-
| | | (a) the actual amount of that investment, or |
| (b) an amount representing one-fifth of the assessable income of that company or body of persons for that year of assessment, or |
| (c) two hundred thousand rupees, whichever amount is the least, shall, for the purposes of sub-section (4) of this section, be the permitted allowance in relation to such investment. |
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| | (3) Where a company or a body of persons has made in any year of assessment two or more approved investments, the aggregate amount of such investments shall be treated as one approved investment for the purposes of this section. | | |
| | (4) Where a company or body of persons, in the year preceding any year of assessment commencing on or after April 1, 1967, makes an approved investment, such company or body of persons shall be entitled, on account of that investment, to such relief from income tax as will secure that the tax payable by such company or body of persons is reduced to the amount which would be payable as the tax if the permitted allowance in relation to that investment were deducted from the statutory income of such company or body of persons: | | |
| | (5) Where the ownership of any investment in respect of which relief is granted to a company or body of persons under sub-section (4) changes, otherwise than by the dissolution of, or the cessation of the business carried on by, that company or body of persons, within a period of six years after the date of such investment, then in respect of the year of assessment in which such relief is granted an additional assessment consisting of the difference between the amount of income tax to which that company or body of persons would have been liable if such relief were not granted and the amount of tax which that company or body of persons has paid for that year of assessment shall, notwithstanding any thing in this Act, be made in respect of that company or body of persons and the provisions of this Act relating to notice of assessment, appeal and other proceedings shall apply in relation to such additional assessment. | | |
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Sri Lanka Consolidated Acts