https://www.taxtmi.com/caselaws?id=186721 A partner in a registered firm is not automatically barred from claiming deductions against his share of partnership profits included in total income. The Court distinguished the assessment scheme for registered firms and indicated that, where no statutory prohibition applies, deductions needed to ascertain the true business income may be allowed. However, the assessee must prove that the expenditure was incurred for the purpose of earning that income. On the facts, the interest on borrowings was not shown to have been used for the business or to earn the partnership profits, so the claim failed as an admissible business deduction. en-us Thu, 23 Sep 1954 00:00:00 +0530 Wed, 28 Sep 2016 13:16:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186721 A partner in a registered firm is not automatically barred from claiming deductions against his share of partnership profits included in total income. The Court distinguished the assessment scheme for registered firms and indicated that, where no statutory prohibition applies, deductions needed to ascertain the true business income may be allowed. However, the assessee must prove that the expenditure was incurred for the purpose of earning that income. On the facts, the interest on borrowings was not shown to have been used for the business or to earn the partnership profits, so the claim failed as an admissible business deduction. Case-Laws Income Tax Thu, 23 Sep 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186721