Held that section 40(b)(v) restricts a firm from claiming a deduction towards remuneration paid to its working partner exceeding certain limits of book profits income. Explanation 3 to section 40(b)(v) defines the term “book profits” to mean the net profit, as shown in the profit and loss account for the previous year, computed in the manner laid down in Chapter IV-D as increased by the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit. For the purpose of ascertaining the ceiling on the basis of book profits, the profit as appearing in the profit and loss account was to be taken. Hence, the interest income could not notionally be excluded while determining the allowable deduction of remuneration to partners under section 40(b)(v) of the Act. The interest income formed part of business income for the purpose of computing the admissible deduction under section 40(b)(v) of the Act. Revision order is set aside.(AY.2014-15)