querry on 155JB Income tax

Dear Ashish,

The term for "dimunition in the value of Fixed Assets" is known as "Impairment of Assets" as per AS-28.

This specific amendment is brought to overrule the Honble SC judgement in the case of HCL Coment System in which it was held that dimuniation in the value of Assets need not to be added back for computing MAT.

So after this amendment any revaluation/impairment loss in  Fixed assets shall be added back to compute MAT.

Hi Aamir

Can you plz confirm on the other two querry also i.e Goodwill & patents written off to P&L a/c. Will these be also added to back for arriving at book profits. 

Thanks & Regards

Dear Ashish,

I think treatment should be as follows-

Amortization of "Goodwill" & "Patents" is nothing but Depreciation on Fixed Assets (Intangible)....

Depreciation on both is allowed u/s 32 as Intangible Assets

While calculating Book Profits for the purposes of MAT, Depreciation is to be taken as per books of Accounts  & not as per Sec 32. Though presentation style is a bit different but in nutshell it will not effect Book Profit & remain excluded...

Having said that any "any excess amortization" which can be said as "impairment" shall be added back.... 

hey thx Amir...

needed to solve this doubt coz m giving my exam this may...

thanks....

Dear Ashish,

ALL the best Bro..................

Do well.......