Mat-unabsorbed depreciation of business loss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2012 If a company has business loss Rs 100 & unabsorbed depreciation Rs 80 in Year1. In year 2, business loss is 50 & unabsorbed depreciation Rs 72.

In the third year it has a profit of Rs 400.

While calculating MAT, lower of loss b/f or unabsorbed depreciation is to be deducted. Now whether this is to be taken as consolidated or yearwise?

CA Harish Suwalka

CA Harish Suwalka (Expert)
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26 January 2013 Amount of brought forward loss or unabsorbed depreciation whichever is less” in clause (iii) shows the intention of the legislature for considering one consolidated figure of brought forward loss or unabsorbed depreciation for the earlier years in totality and not on year to Year basis, the same view is taken in case of amine textiles