Apple Industries Ltd. provides the following information for the financial year 2014-15: Net profit as per statement of profit and loss after debiting/crediting the following: ₹120 lakh Proposed dividend: ₹30 lakh Profit
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2015
Apple Industries Ltd. provides the following information for the financial year 2014-15: Net profit as per statement of profit and loss after debiting/crediting the following: ₹120 lakh Proposed dividend: ₹30 lakh Profit from unit established in SEZ: ₹20 lakh Provision for income-tax: ₹18 lakh Provision for deferred tax: ₹10 lakh Provision for permanent diminution in value of investments: ₹3 lakh Depreciation debited to statement of profit and loss ₹10 lakh includes depreciation on revaluation of assets to the tune of ₹1 lakh. Brought forward losses and unabsorbed depreciation as per books of the company are as follows: Previous Year Brought Forward Losses (₹ in lakh) Unabsorbed Depreciation (₹ in lakh) 2010-11 1 4 2011-12 1 1 2012-13 10 5 Compute the book profit of the company as per section 115JB for the assessment year 2015-16.
Answer & Explanation:
Computation of Book Profits of Apple Industries Ltd for FY 2014-15 Particulars Amount (₹ in lakhs) Amount (₹ in lakhs) Net profit as per P & L a/c 120 Add: Proposed dividend 30 Provision for Income Tax 18 Provision for deferred tax 10 Provision for permanent diminution in value of investments 3 Depreciation debited to P/L statement (including revaluation depreciation) 10 Total Additions 71 Sub-total 191 Less: Depreciation (excluding depreciation on revaluation) (₹10 lakh - ₹1 lakh) 9 Aggregate unabsorbed depreciation (4+1+5) (Note: Since unabsorbed depreciation is less than brought forward losses, unabsorbed depreciation is taken.) 10 Total Deductions (19) Book Profit U/s 115JB 172 Note: Profit from unit established in SEZ is not deductible for MAT purposes as per the provisions of Section 115JB.
Topics: Income Tax
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