I AM ACCOUNTS HEAD OF A GROUP WHERE FROM LAST 9 YEARS THEY ARE CHARGING DEPRECIATION OF A RESIDENTIAL FLAT USED BY THE DIRECTORS BUT DUE TO NO INCOME IN THE SAID COMPANY DEPRECIATION AS PER I.T. TOTALLY REMAINS UNADJUSTED IN LAST 9 YEARS TAKING THE LOLL OF LOSS TO 7.50 LACS.
NOW IN 31.03.2010 I WANT TO WRITE BACK THE DEPRECIATION LEVIED IN LAST 9 YEARS.
I WILL HAVE TO BOOK THE WIRTTEN BACK DEPRECIATION AS PER I.T.IN BOOKS BY SHOWING INCOME AMOUNTING TO RS.3.25 LACS AND IN I.T.COMPUTATION I HAVE TO ADD DEPRECIATION BENEFIT TAKEN EARLIER TO THE TUNE OF 5.03 LACS AND ACCORDINGLY AFTER SETTING OF THE UNABSORBED DEPRECIATION OF LAST 9 YEARS .78 LACS WILL BE LEFT OUT.
MY QUESTION IS WHETHER TAX ON MAT WILL BE APPLICABLE IN THIS CASE AS I AM WRITING BACK THE SAME DEPREIATION WHICH WAS CLAIMED EARLIER.
MAT ON 8.28 LACS ?
REGARDS
SURESH KUMAR BHUTRA
CAclubindia
