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TMI Blog1970 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ny was formed under a deed dated July 16, 1948, to carry on the business of "managing and selling agents" of Hukumchand Mills Ltd. Sir Hukumchand and his son, Rajkumar Singh, were two of the five partners of the firm. They represented the interest of the Hindu undivided family of Sir Hukumchand and his sons. On March 31, 1950, the property of the Hindu undivided family was partitioned and the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representing the family from entering into a partnership with a stranger or strangers. At the instance of the Commissioner of Income-tax, the following question was referred by the Tribunal: "Whether, in the facts and circumstances of the case, the firm Hukumchand and Mannalal Company could be granted registration under section 26A of the Act ?" The High Court answered the question in the af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the family may make a claim against the manager for treating the income or profits received from the partnership as a joint family asset, but they cannot claim to exercise the rights of partners nor be liable as partners." This position in law was not disputed on behalf of the Commissioner. But it was urged that since two members of a coparcenary represented, in the firm, the same beneficial int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on with the stranger: the partnership will be governed by the Act." It is clearly enunciated that one or more members of a Hindu undivided family may enter into a contractual relation in the nature of a partnership with a stranger and they qua the stranger become partners. The view expressed by the Judicial Committee was approved by this court in Charandas Haridas v. Commissioner of Income-tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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