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1973 (3) TMI 36 - DELHI HIGH COURTAssessee, a partner in a managing agency firm - loss to managed company in transaction on its behalf - assessee agreed to bear part of the loss. It was also found that the payment was for preserving managing agency - whether the payment should first appear in the firm's account and be processed for assessment - true effect of the payments made by the assessee-company seems to be that these payments are directly debited to the assessee's account and to no other account and, hence, they cannot but be shown in the individual assessment of the assessee-company. Once it is found, as it has been found that the amounts have been expended for business purposes and wholly and exclusively laid out for purposes of business, the payments become allowable deductions in the trading account of the assessee-company - In view of this conclusion it must be held that the payment of Rs. 9,500 by the assessee-company is an allowable deduction subject to verification regarding the correctness of the quantum of loss claimed, etc., as directed by the Tribunal.
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