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Issues:
1. Interpretation of partnership deed regarding the status of Krishna Murari. 2. Registration of partnership under Section 26A of Indian Income-tax Act. 3. Compliance with Indian Income-tax Rules regarding partnership application. Interpretation of Partnership Deed: The case involved a partnership deed executed between adult members and a minor, Krishna Murari. The deed failed to acknowledge Krishna Murari's minority status, treating him as a major partner. However, Indian law deems contracts by minors void, though they may benefit under Section 30 of the Indian Partnership Act. In this case, Krishna Murari's natural guardian, his adoptive mother, did not consent to his partnership. Thus, the minor was neither a full partner nor admitted to partnership benefits, based on legal precedent. Registration under Section 26A: Given the conclusion that Krishna Murari was not a partner, the question of registering the partnership under Section 26A did not arise. The partnership application was dismissed due to the incorrect representation that the firm's constitution remained unaltered, despite Krishna Murari's death and lack of his legal representative's signature. The application was not in compliance with the rules, as it failed to reflect the altered partnership structure. Compliance with Income-tax Rules: The application for partnership renewal was deemed improper as it did not adhere to Rules 2-6B of the Indian Income-tax Rules. Despite past registrations, the 1943 application was flawed. It did not include the deceased partner's legal representative's signature, nor did it disclose the change in the firm's constitution. The false certification of an unaltered partnership structure further invalidated the application. Consequently, the application was rightfully rejected based on non-compliance with the prescribed rules. In conclusion, the judgment clarified that Krishna Murari was not a partner in the firm, rendering the partnership registration issue moot. The application's dismissal was justified due to its failure to meet the requirements of the Income-tax Rules. The case underscored the importance of legal capacity in entering partnerships and the necessity of strict adherence to regulatory provisions in formal applications.
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