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Mat calculation

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Babita

Industrial Trainee

77 Points Posted on 13 December 2012

Hi all,

As we all know that for calculation of MAT we are allowed an adjustment for Carry forward loss or unabsorbed depreciation whichever is lower...

Can somebody suggest whether that adjustment is available on year to year basis or on a cumulative basis.

Please quote the relevant case law.

Thanks in advance.

Replies (5)

Karan Teli

Life Is just an Illusion...!!

2906 Points Posted on 13 December 2012

I am very much sure that cummulative loss has to be carry forward and not YoY loss.. I had a very tough task in this matter but have no idea of Case laws

CA rahul

BCOM(H) ACA

394 Points Posted on 13 December 2012

for the mat calculation adjustment is available on cummulative basis . board of studies also taken the same view in the suggested answer of nov 2008 .i am enclosing the same for your reference

Babita

Industrial Trainee

77 Points Posted on 14 December 2012

Thanks a lot for your response... Also, got the case law supporting your view... but there are also case laws available supporting opposite view i.e loss or depreciation to be considered on Y to Y basis... I am attaching link for the same... https://www.indiankanoon.org/doc/104544740/