Q: Elaborate the citation of Wallace Brothers V. CIT, 1948 ?

Ans: In Wallace Brothers v. CIT, (1948) 50 Bom, LR 482 (P(C) the court observed that the expression 'acting for all' is intended to emphasize the principle that partners when they carry on business of the firm act as agents as well as principles. In Chimanram v. Jayautilal, ILR 1939 Bom. 616 , the court held that the test of liability is not merely whether there is participation or sharing of profits but whether there is such sharing of profits as to constitute relation of principal and agent between the person taking profits and those carrying on the business.

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