Dear Experts
A company X Private Limited had unabsorbed depreciation of Rs. 5 lacs and brought forward losses excluding depreciation of Rs. 4 lacs as per books in the Assessment Year 2012-13 and the position as per income tax act was also the same.
In the Assessment Year 2013-14 company has profits of Rs. 8 lacs as per income tax act and the book profits computed u/s 115JB are also the same. Now on what amount the company is liable to pay tax and at what rate?
Suppose as per 115JB company can set off unabsorbed depreciation and b/f losses excluding depreciation whichever is lower i.e. b/f losses of Rs. 4 lacs. Than can the company carry forward the unabsorbed depreciation of Rs. 5 lacs which has not been set off?
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