Summary of ruling

• The Applicant is in the business of procuring, processing, manufacturing, packaging and export of agricultural produce in Uganda.
• In November 2018, the Applicant purchased 8 warehouses and an office building from Lexman Ltd for USD. 3,595,000. The Applicant subsequently carried out extensive renovations.
• The Applicant claimed an Initial Allowance of USD. 3,959,000 which the Respondent disallowed on ground that the building was not new and had been previously used by Lexman Ltd.
• The Applicant’s building met the test for industrial building as the Applicant used the buildings in question primarily for manufacturing/processing purposes.
• All evidence points to the fact that the buildings were put in use for the first time in the Applicant’s business.
• The Applicant is entitled to the initial allowances and the assessments are set aside.
• Application allowed