MAT [Resolved] | Income Tax #495855

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2010 my client has suffered huge lossess B/f business lossess before dep as per books of accounts Rs.50.00 Lacs & B/f dep as per books of accounts as per Rs150.00 Lacs during the year the company has earn book profit of Rs.25.00 Lacs so what will be the deduction for u/s 115JB. and we have taken deduction of loss B/f whichever is less our income as per computation is nil after setoff and what is the status of remaining C/f loss in next year.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

30 September 2010 B/F loss,

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

30 September 2010 Setting off of the least amount of business loss and depreciation for the purpose of 115JB is a notional adjustment and it has no impact on the amount of loss/depreciation to be caried forward meaning thereby that business loss Rs.50/- lakhs and depreciation Rs.150/- lakhs, both as such, can be carried forward to the immediately succeding year.

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NISHIT A. DOSHI

NISHIT A. DOSHI (Expert)

07 October 2010 Hi,

As per the provisions of section 115JB, one can claim brought forward loss or unabsorbed depreciation whichever is less.

In your case, i think you made set off of your business loss to the extent 25 lakhs and accordingly your book profit is shown as nil.

So, in the next year, you will get 25 lakhs b/f loss and b/f dep 150 lakh as carry forward.

So, in next year again you will be able to claim only 25 lakh loss as your loss is less than the unabsorbed dep.

So, you can carryforward only the remaining amount.

I hope this will clarify tthe things.

Thanks
C.A.NISHIT DOSHI

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

07 October 2010 Doshi Ji may reconsider the observation in view of section 115JB(3).

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