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2018 (8) TMI 715 - HC - Income TaxClaim of expenses u/s 37(1) - litigation and settlement expenses - during the legal proceedings, the appellant switched gear and became a lawyer in order to settle the dues of the company and discharge his personal guarantee. - He entered into One Time Settlement with the bankers and paid up the agreed amount - Held that:- The discharge of that liability was claimed by him to be business expenditure in relation to subsequent income generated through legal profession. In our opinion, such claim is clearly inadmissible. The kind of expenditure which a legal professional can legitimately and justly claim is entirely different from the basic expenditure which a commercial entity can claim. Moreover, the commonality sought to be urged, i.e. the persona of the assessee that obscures the fact is that the hat donned by the assessee in the past was of a business entrepreneur whereas he is now a legal professional; crossing of line is impermissible as the law stands today. - Decided against the assessee.
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