Company: GDSTR
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014248
Chunk: 25

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 25
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 portion of deferred tax assets will not be realized.

13

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides
guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

 While ASC 740 identifies usage of an effective
annual tax rate for purposes of an interim provision, it does allow for estimating individual elements in the current period if they are
significant, unusual or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the
timing of any potential business combination expenses and the actual interest income that will be recognized during the year. The Company
has taken a position as to the calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If
an entity is unable to estimate a part of its ordinary income or loss or the related tax provision or benefit but is otherwise able to
make a reasonable estimate, the tax provision or benefit applicable to the item that cannot be estimated shall be reported in the interim
period in which the item is reported.” The Company believes its calculation to be a reliable estimate and allows it to properly
take into account the usual elements that can impact its annualized book income and its impact on the effective tax rate. As such, the
Company is computing its taxable income or loss and associated income tax provision or benefit based on actual results through the nine
months ended December 31, 2024 and 2023.

The Company recognizes accrued interest and
penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued
for interest and penalties as of December 31, 2024 and March 31, 2024. The Company is currently not aware of any issues under review
that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as
its only “major” tax jurisdiction.

The Company may be subject to potential examination by federal and
state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions,
the nexus