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An interesting ques...it experts pls suggest

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Saurabh Maheshwari

B.com ACA

4340 Points Posted on 26 February 2013

A Pvt Ltd co. in its return of Income filed for AY 2011-12 on Sept25, 2011:

Book Profits = 2 crores

Tax payable on total Income as per IT Provisions - NIL because of losses due to depreciation u/s 32 )

MAT payable= 2 crores*18.54%(18%+cesses)= 37,08,000

But the company (due to some confusions) filed return without paying any Tax(MAT) .

On Jan 15,2012 company received intimation u/s 143(1) demandind tax(MAT) Rs. 37,08,000+Interest.

The company actually did not not claimed the dec\uction of B/f losses or unabsorbed depreciationwhichever is lower to the tune of rs. 2.7 crores from Book Profits as per explanation to sec 115 JB,

Now my question is that can the company claim that deduction from book profits by rectifying the order u/s 154 or it need to file revise return before 31.03.2013?

Please reply ............

Replies (1)

CA JATINDER KAPOOR

JOB

256 Points Posted on 07 July 2013

If the date of revised return is still remaining then filing revised return is better option.

but if the date of revised return expired then in my opinion retification u/s 154 is not possible because retification u/s 154 is possible when there is mistake apperent from the record not in case where a claim of exp. has not been claimed.