Partner's business-expense deduction allowed against share income where travel and motor car costs were incurred for supervising partnership work.

A partner's share of partnership profits is treated as business income in the partner's hands, and expenditure incurred wholly and exclusively for earning that income is allowable in computing taxable income. On the stated facts, travelling and motor car expenses were incurred in supervising and attending to partnership business, so the related deduction was permitted. The assessee's own disallowance was considered sufficient, and the full deduction claimed was allowed against the partner's share income.

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Issues: Whether motor car and related expenditure incurred by a partner was deductible against his share income from the partnership business.

Analysis: The share of a partner in partnership profits is treated as business income in the partner's hands. Expenditure incurred for the purpose of earning that income is allowable in computing the partner's taxable income. On the facts, the assessee's travelling and motor car expenses were incurred in supervising and attending to the partnership business, and the disallowance already made by the assessee was considered adequate.

Conclusion: The expenditure was allowable as a deduction against the assessee's share income and the assessee was entitled to the full deduction claimed.

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