If company has a book profit Rs.100 Lacs and Brought forward loss of 200 lacs which includes unabsorbed depreciation of 80 lacs can under calculation of 115JB can i set off of unabsorbed depreciation as per provision of mat. Can I correct
Karan Gupta (CA FINAL STUDENT) (414 Points)
26 September 2012If company has a book profit Rs.100 Lacs and Brought forward loss of 200 lacs which includes unabsorbed depreciation of 80 lacs can under calculation of 115JB can i set off of unabsorbed depreciation as per provision of mat. Can I correct
CA Harsh Lunia
(Audit)
(81 Points)
Replied 27 September 2012
As per 115JB, certain additions and deductions need to be done to the profit as per profit and loss account in order to arive at profit as MAT. One of them being,
deduction of unabsorbed depeciation or carried forwatd losses, whichever is less.
Hence, if any of the figure is NIL, then no deduction has to be made.
In your case, Rs 80 lacs can be deducted to arrive at book profit under MAT
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
