2017 (4) TMI 1341

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.... Shri Rahul Kumar, Sr. D.R. ORDER N.K. Billaiya, Accountant Member: 1. Being aggrieved by the order of the Ld. CIT(A)-XX, Ahmedabad dated 04.03.2014 pertaining to A.Y. 2005-06, the assessee has preferred this appeal before us. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the disallowance of partners remuneration of Rs. 5,13,714/-.....

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....s which were to be adjusted before computing the book profit for the allowability of remuneration to partners. 6. The assessee furnished a detailed reply stating that the brought forward business losses will not be deducted from book profit and the net profit after allowing remuneration and interest to partners should be considered for the calculation of set off against brought forward business....

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.... 10. We have given a thoughtful consideration to the orders of the authorities below qua the issue. The book profit has been defined in Explanation 3 below section 40(b) of the Act and the same reads as under:- "Explanation-3 - For the purpose of this clause, "book profit" means the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down....