https://www.taxtmi.com/caselaws?id=174107 Interest income credited to a firm's profit and loss account and assessed as business income is to be included in book profit for computing the ceiling on partner remuneration under section 40(b). The Tribunal followed co-ordinate bench decisions and held that, for Explanation 3 to section 40(b), the net profit shown in the profit and loss account cannot be split into separate heads of income or reclassified under section 14 to exclude such interest. The entire net profit reflected in the account remains relevant, so the Assessing Officer's disallowance was not sustainable. en-us Fri, 07 Sep 2012 00:00:00 +0530 Wed, 30 Sep 2015 11:46:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174107 Interest income credited to a firm's profit and loss account and assessed as business income is to be included in book profit for computing the ceiling on partner remuneration under section 40(b). The Tribunal followed co-ordinate bench decisions and held that, for Explanation 3 to section 40(b), the net profit shown in the profit and loss account cannot be split into separate heads of income or reclassified under section 14 to exclude such interest. The entire net profit reflected in the account remains relevant, so the Assessing Officer's disallowance was not sustainable. Case-Laws Income Tax Fri, 07 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174107