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2010 (10) TMI 686 - ITAT, MUMBAIDisallowance - Voluntarily surrendered income during survey u/s 133A - Since the assessee is engaged in the business of manufacturing and export of garments the same, is not other income other than income from such business - Therefore, in view of the decisions cited on by the learned counsel for the assessee the additional income declared during the course of survey, has to be treated as business income - The assessee is accordingly entitled to claim remuneration to partner on such business income. Under section 40(a)(ia) of the Act - - Partners remuneration u/s.40(b) - As regards the alternate contention of the learned counsel for the assessee that enhanced remuneration to partners should be allowed in case the disallowance of Rs.58,48,912 is upheld, we do not find any merit in the same. Remuneration to partners has to be computed on the basis of the book profit declared by the assessee subject to the conditions prescribed u/s. 40(b) of the Act - Enhanced remuneration to partners cannot be allowed on the basis of any addition/disallowance made in the assessment order - Therefore,do not find any merit in the alternate contention of the learned counsel for the assessee - The above grounds by the assessee are accordingly dismissed. depreciation on motorcar and vehicle expenses - absence of maintenance of log book - Disallowance of 20% depreciation on motorcar for probable personal use appears to be on higher side and, therefore, restrict such disallowance of depreciation to 15% - Similarly, the disallowance of Rs.50,000 out of the vehicle expenses also appears to be on higher side - Therefore, restrict such disallowance to Rs.40,000 - Thus, appeal of the assessee is accordingly partly allowed. levy of interest u/s. 234B and 234D - Since, charge of interest u/s. 234B is mandatory and consequential in nature - Similarly, since provisions of sec. 234D were bought to the statute book by the Finance Act, 2003 w.e.f 1.6.2003 and since the assessment year involved is 2005-06, therefore, the same, in our opinion, is also mandatory and consequential - Therefore, this ground by the assessee is dismissed.
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