ASSESSMENT OF INCOME A.Y.2011-12

[Asked by Guest]

We have filed I.T.R.FOR A.Y.2011-12 showing book profit of Rs.2,85,00,000/- and paid MAT Rs. 1,11,00,000. Recently assessment for the said A.Y. has been completed and A.O.has determined income of Rs.65,00,000/- disallowing Depreciation at the rate of 80 percent and allowing only at the rate of 15 percent .  and asked to pay Income tax on the said income as determined by the A.O.whether we are entitled for refund of MAT?  Further whether the Depreciation so disallowed can be adjusted and  to the block of assets so as to determine taxable income for the next A.Y.?

AI Summary

Minimum Alternate Tax entitlement where assessment reduces taxable income due to depreciation disallowance, refund and carryforward issues.
Whether payment of Minimum Alternate Tax is refundable when assessment fixes taxable income lower than the book profit used for MAT by disallowing depreciation, and whether the disallowed depreciation can be adjusted into the block of assets to determine taxable income in a subsequent year.