Mat applicable on written back of unsecured loan
This query is : Resolved
11 April 2013
xyz pvt ltd is in processes of closing there business and removal of their name from ROC. Balance sheet prepared for 31.03.2013 company has written back unsecured loan taken from directors in p & l account. I have read case law on the basis of that come to conclusion that unsecured loan is not taxable as per income tax act.my question is whether it is covered in MAT as book profit is 16 lakhs which is nothing but unsecured loan written back. plz suggest me any case law or section regarding whether MAT is applicable or not ??
Thanx
Thanx
11 April 2013
I presume the non-taxability of unsecured loan would be on account of "capital receipt" and not "revenue receipt"
Similar treatment you can make in P&L as well you can create direct credit to Reserve & Surplus. As per Income tax law ITO can not challenge audited books of accounts
Similar treatment you can make in P&L as well you can create direct credit to Reserve & Surplus. As per Income tax law ITO can not challenge audited books of accounts
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Not able to file ITR
- Building tax payment deduction in rental Income
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
