Income from other source credited to P & L A/C cannot be discarded for computing partner's remuneration

0 comments Wednesday, November 28, 2012

  The assessee-firm derived its income from profession as an advocate. In the profit and loss account, the assessee-firm credited certain amount received as licence fee and compensation for use of shared facilities.
 In the course of assessment, the Assessing Officer opined that since the aforesaid income was not a professional income, the same could not form part of 'book profit' for computation of allowable remuneration to partners under section 40(b).
  The Commissioner (Appeals) upheld the assessment order.
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