29 July 2011
One of the adjustment to book profit while computing MAT is "deduct unabsorbed depreciation or loss brought forward whichever is less".
If unabsorbed business loss of Rs.40 lacs is pure business loss and not includes any unabsorbed depreciation (i.e. unabsorbed depreciation is "NIL"), then you have to compute MAT on Rs.100 Lacs and not Rs.60 Lacs.
Because in this case unabsorbed depreciation is equal to "0" which is least for deduction from book profit.
29 July 2011
If there is no unabsorbed depreciation as per books of account, book profit in the cited case is Rs. 100/- Pl see explanation (b) to section 115JB(2).
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