https://www.taxtmi.com/caselaws?id=71263 Interest income credited in the firm's profit and loss account formed part of the book profit for computing partner remuneration under section 40(b)(v). The provision uses the net profit shown in the accounts as the base for the remuneration ceiling, and that base cannot be split into separate heads to exclude income merely because it may be assessable under another head. Where the interest arises from the firm's commercial assets and is reflected in the accounts, it remains part of book profit for this purpose. The inclusion of bank-deposit interest was therefore upheld, and the Revenue's challenge failed. en-us Tue, 30 Aug 2005 00:00:00 +0530 Thu, 18 Apr 2024 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71263 Interest income credited in the firm's profit and loss account formed part of the book profit for computing partner remuneration under section 40(b)(v). The provision uses the net profit shown in the accounts as the base for the remuneration ceiling, and that base cannot be split into separate heads to exclude income merely because it may be assessable under another head. Where the interest arises from the firm's commercial assets and is reflected in the accounts, it remains part of book profit for this purpose. The inclusion of bank-deposit interest was therefore upheld, and the Revenue's challenge failed. Case-Laws Income Tax Tue, 30 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71263