MAT U/s 115jb

Tax queries 1200 views 4 replies

CA PARTH SHAH

In Practice

1951 Points Joined December 2009

HELLO FRIENDS,

WHILE CALCULATING BOOK PROFIT U/S 115JB IF BY MISTAKE, ADJUSTMENT OF BROUGHT B/F LOSS OR UNABSORBED DEPRECIATION AS PER BOOKS OF ACCOUNT WAS NOT DONE FOR PY 2009-10. INCOME TAX DEPARTMENT HAVE NOT RAISED ANY QUERY UNDER INTIMATION U/S 143 AND COMPANY ALSO GOT REFUND. NOW IN CURRENT YEAR TOO, COMPANY HAS EARNED PROFIT AND HENCE IT ALSO HAVE BOOK PROFIT. B/F LOSS WAS 50,00,000 AND BOOK PROFIT WAS 10,00,000. CURRENT YEAR BOOK PROFIT IS70,00,000 .

NOW THE QUESTION IS WHILE DOING ADJUSTMENT OF DEDUCTING B/F LOSS OR UNABSORBED DEPRECIATION FOR THE CURRENT YEAR, WHETHER WE HAVE TO DEDUCT FULL B/F LOSS50,00,000 FROM BOOK PROFIT70,00,000 OR ONLY40,00,000 (NOTIONALLY ADJUSTING10,00,000 OF P.Y. 2009-10) FROM BOOK PROFIT70,00,000 IN P.Y. 2010-2011?

Replies (4)

Prabhavathy, M.Com, ACA

Chartered Accountant

35 Points Joined June 2010

Last year the company paid tax on book profit or Income tax profit.

Guest

Very interesting,

now the question arises whether it is mandatory to claim business loss or unabsorbed depreciation as per books of accounts.

Now as per my opinion the provisions of S 115JB are mandatory. If it was not claimed then AO has the power to adjust it. (Apollo tyre case)

If you wish apply for rectification of mistake u/s 154.

Thanks

CA Saiyum khan

Practicing CA

690 Points Joined November 2008

It is suggested to apply for rectification u/s 154 and get the refund of the tax paid on Rs.10,00,000 book profit. In the current year only Rs.40 lacs would be available for adjustment.