Withdrawl of instruction No.1161-Status of partnership in eventuality of minor becoming major.

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..... and opting to become a partner is merely a technicality and that the firm is entitled to the continued benefit of registration originally granted on the basis of the earlier partnership deed, provided there has not been a change in the shares of the partners as evidenced by the said instrument of partnership. In para 3 thereof it was further clarified that the condition of no change in the shares .....

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..... full fledged partner on ataining majority ipso facto becomes liable to share in losses also and that in case losses are borne in entirety by only some of the partners the partnership deed would still be a valid one. Reasoning for that was that section 30(7)(b) of the Partnership Act read with sec.4 thereof makes it clear that when a minor elects to continue as a partner he shares in profits only u .....

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..... hange in the shares of the partners as evidenced by the instrument of partnership. Where the instrument foresees the eventuality of a minor becoming major and makes provision for the distribution of the shares at that time, the instrument evidences the changes in the shares. But if the ITO is unable to ascertain the shares from the instrument it will be a case where the instrument does not evidenc .....

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