Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1960 (12) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1960 (12) TMI 2 - SC - Income TaxWhether the instrument of partnership dated March 27, 1946, created a valid partnership ? Whether the fact that on January 1, 1946, there was no firm in existence would be fatal to the application for registration of the firm under section 26A of the Indian Income-tax Act or whether the firm could be registered with effect from March 26, 1946, if it is held that the firm was genuine ? Held that:- Section 30 of the Indian Partnership Act clearly lays down that a minor cannot become a partner, though with the consent of the adult partners he may be admitted to the benefits of partnership. Any document which goes beyond this section cannot be regarded as valid for the purpose of registration. Registration can only be granted of a document between persons who are parties to it and on the covenants set out in it. If the income-tax authorities register the partnership as between the adults only contrary to the terms of the document, in substance a new contract is made out. It is not open to the income-tax authorities to register a document which is different from the one actually executed and asked to be registered. In our opinion, the Madras view cannot be accepted. Appeal allowed.
|