| Case ID |
2dfc65eb-cc16-42ce-8ac1-2bf00dab08f9 |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 1971 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the deed of partnership need not be signed by the guardian of a minor admitted to the benefits of partnership for it to be valid. The requirement for the minor to contribute capital alongside other partners does not invalidate the partnership. Thus, the Tribunal's decision to allow registration to the assessee was justified, affirming the minor's involvement under the conditions specified. |
| Summary |
In this landmark case, the Calcutta High Court addressed the validity of partnership deeds involving minors under the Income-tax Act, 1961. The court ruled that the absence of a guardian's signature on a partnership deed does not invalidate the partnership if a minor is admitted to its benefits. Additionally, the court clarified that requiring a minor to contribute capital does not preclude the registration of the partnership. This case underscores the legal framework governing partnerships and minors, providing essential insights for tax practitioners and legal advisors. Understanding the implications of minor involvement in partnerships is crucial for compliance with the Income-tax Act, ensuring effective partnership management, and navigating tax liabilities. This case serves as a precedent for similar disputes regarding partnership registration and the rights of minors within such agreements. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
AJIT K. SENGUPTA,
J.N. HORE
|
| Lawyers |
A.C. Maitra,
A.K. Roychoudhury
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Sriram Industrial Distribution
|
| Citations |
1989 SLD 2204,
(1989) 176 ITR 180
|
| Other Citations |
CIT v. Associate Industrial Distributors [1982] 138 ITR 304 (Cal.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
184(7)
|