COMPULSORY FOOD PRODUCTION (TAX RELIEF)

(1) Where land which is not under permanent cultivation is cultivated with foodstuffs by the proprietor of an estate, in order to comply with the provisions of any written law requiring the compulsory cultivation of foodstuffs by proprietors of estates, all capital expenditure incurred for the purpose of the cultivation of foodstuffs on such extent of such land as does not in the aggregate exceed the extent of the area on which that proprietor, in his capacity as such, is so required to cultivate foodstuffs, shall, notwithstanding anything in the Income Tax Ordinance or the Excess Profits Duty Ordinance, No. 38 of 1941, but subject to the provisions of section 5, be deemed, for the purposes of each of those Ordinances to be outgoings and expenses incurred in the production of the profits or income of the agricultural undertaking carried on by that proprietor on that estate.

(2) Where, for the purpose of complying with the provisions of any written law requiring the compulsory cultivation of foodstuffs by proprietors of estates, foodstuffs are cultivated on any extent of land by the proprietor of an estate on which an agricultural undertaking for the production of coconuts is carried on, the business of the production of foodstuffs on such extent of land shall, notwithstanding anything in the proviso to section 3 (1) of the Excess Profits Duty Ordinance, No. 38 of 1941, be deemed to be a business of the like nature as such agricultural undertaking, but shall not be deemed to be of the like nature as any other agricultural undertaking carried on by that proprietor.

(1) Where land which is not under permanent cultivation is cultivated with foodstuffs by any approved undertaking, and exemption from the liability to cultivate foodstuffs is, under the provisions of any written law requiring the compulsory cultivation of foodstuffs by proprietors of estates, for the time being in force in respect of any proprietor or proprietors by whom contributions have been made towards the capital of such undertaking, the following provisions shall, subject to the provisions of section 5, have effect, notwithstanding anything in the Income Tax Ordinance, or the Excess Profits Duty Ordinance, No. 38 of 1941: –

(2) Where any person has received or is entitled to receive a share in the profits of an approved undertaking, the share of such person in the profits or loss of such undertaking shall, for the purposes of the Excess Profits Duty Ordinance, No. 38 of 1941, be deemed to be profits or loss of the business of an agricultural undertaking separately carried on by such person ; and such business shall, for the purposes of the proviso to section 3 (1) of that Ordinance, but subject to the provisions of subsection (3) of this section, be deemed to be a business of a like nature as any other agricultural undertaking carried on by such person.

(3) Where an agricultural undertaking for the production of coconuts is carried on by any proprietor on any estate, and any exemption under the provisions of any written law requiring the compulsory cultivation of foodstuffs by proprietors of estates is for the time being in force in respect of that estate by reason of the fact that the proprietor has made a contribution towards the capital of any approved undertaking, the share of that proprietor which is deemed under subsection (2) to be the profits or loss of a separate business carried on by him, or such part of that share as is attributable to the amount of the contribution required by such written law to have been made by him for the purpose of securing such exemption in respect of that estate, shall be deemed to be the profits or loss of a business of the like nature as the agricultural undertaking for the production of coconuts carried on on that estate, and not of the like nature as any other agricultural undertaking carried on by him.

(1) The provisions of section 2 or section 3 or section 4, as the case may be, shall not apply, and shall be deemed not to have applied at any time, in relation to any land, if the cultivation of foodstuffs on that land is discontinued before the expiry of a period of three years from the commencement of the clearing of that land for cultivation or if the land is sold or transferred before the expiry of that period.

(2) Where any capital expenditure incurred in the clearing of any land and in the cultivation of foodstuffs thereon has, under the preceding provisions of this Ordinance, been treated as outgoings and expenses in the assessment of the profits or income of any person or of any business for any year of assessment or accounting period, and it appears to an Assessor that the cultivation of foodstuffs on that land has been discontinued, or that the land has been sold or transferred, before the expiry of a period of three years from the date of the commencement of the clearing of that land for cultivation, the Assessor may at any time assess such person at the amount or additional amount at which, according to the Assessor’s judgment, such person would have been assessed if such expenditure had not been treated as outgoings or expenses as aforesaid ; and such assessment may be made notwithstanding the expiration of the period of three years prescribed by section 69 of the Income Tax Ordinance, and the provisions of that Ordinance as to notice of assessment, appeal, and other proceedings shall apply to such assessment or additional assessment and to the tax charged thereunder.

(1) This Ordinance shall, in its application in respect of the period commencing on the date on which the Food Production (Estates) Ordinance, No. 2 of 1943, * came into operation, be read and construed as one with that Ordinance, and in its application in respect of any period prior to that date, be read and construed as one with the Food Production (Estates) Order, 1942.

(2) Where any land is cultivated with foodstuffs, all expenditure incurred in the clearing, breaking-up, or preparation of such land for cultivation with foodstuffs, or in the planting of foodstuffs thereon, and all expenditure incidental thereto, shall be deemed for the purposes of this Ordinance to be capital expenditure incurred for the purpose of the cultivation of foodstuffs on such land :

Provided, however, that the cost of the purchase of any land shall not, for the purposes of this Ordinance, be treated as capital expenditure incurred in the cultivation of foodstuffs thereon.