https://www.taxtmi.com/caselaws?id=178735 A partnership firm is treated as no separate legal personality apart from the partners who constitute it for income-tax purposes. Legal expenses incurred in defending partners and a manager against criminal charges were not deductible because they were not shown to have been incurred solely for earning profits; the expenditure also served to protect the personal position and reputation of the accused individuals. The same amount was not allowable as a business loss either, because money spent on defending criminal proceedings and achieving acquittal was not a loss in the ordinary trading sense. The note therefore distinguishes the firm's non-separate status from the separate tax treatment of defence costs. en-us Wed, 13 Dec 1939 00:00:00 +0530 Thu, 11 Feb 2016 17:04:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178735 A partnership firm is treated as no separate legal personality apart from the partners who constitute it for income-tax purposes. Legal expenses incurred in defending partners and a manager against criminal charges were not deductible because they were not shown to have been incurred solely for earning profits; the expenditure also served to protect the personal position and reputation of the accused individuals. The same amount was not allowable as a business loss either, because money spent on defending criminal proceedings and achieving acquittal was not a loss in the ordinary trading sense. The note therefore distinguishes the firm's non-separate status from the separate tax treatment of defence costs. Case-Laws Income Tax Wed, 13 Dec 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178735