banner_ad

Mat applicable on written back of unsecured loan

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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
Profile Image

CA Krunal

Profile Image

CA Krunal (Expert)
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
Profile Image

rahul

Profile Image

rahul (Querist)
12 April 2013 Thank you very much sir.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details