I will just repeat again. Expenses are allowed and disallowed on the basis of whether they are business expenses or not. Any expense of personal nature cannot be claimed irrespective of the type of entity you have.
If you think you can buy a car and claim depreciation in a company, you are reading too much on the net. How is car going to help you in trading? Even if you buy it your company name, though you can claim depreciation in books of accounts, when total income is calculated for the purposes of taxation, such depreciation is to disallowed. So total income will be same whether the entity is company or firm or an individual.
The things that you read on net are not coming from CAs who do tax audit. If I am your auditor I will clearly disallow such expenses. The problems is we read what we wanna read. If it’s going to benefit us, we will think what we read is right.
If it was so, don’t you think our finance ministry would have covered this loophole by now?
I agree is there a small advantage if you go for partnership firm. I have given my opinion here.