9911796707
TMI Blog1991 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... The questions referred for our opinion read : " 1. Whether, on the facts and in the circumstances of the case, the assessee is entitled to registration under the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the words 'person' and 'member' occurring in section 11(2) of the Companies Act, 1956, would include a minor admitted to the benefits of partnership ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consist of more than twenty persons. Section 11(2) of the Companies Act prohibits the formation of a partnership consisting of more than twenty persons. It cannot, therefore, be said that the application for registration of the partnership is maintainable is the finding of the Income-tax Officer. The Income-tax Officer, accordingly, rejected the application for registration of the partnership. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a minor admitted to the benefits of partnership cannot be treated as a partner and, accordingly, held that the argument of the Revenue cannot be taken cognisance of. The Revenue, thereupon, moved a petition under section 256(1) of, the Income-tax Act seeking reference of the above questions which, according to the Revenue, arise out of the order of the Tribunal. The Tribunal was of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to section 30(1) of the Partnership Act is relevant. This section provides that a minor cannot become a partner although, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership. Any deed of partnership which goes beyond this section cannot, therefore, be regarded as valid for the purposes of registration under the Income-tax Act. The definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1990] 186 ITR 518. The Appellate Tribunal, therefore, is right when it held that the minors who had been admitted to the benefits of the partnership cannot be treated as full-fledged partners. If that be the position, it cannot be said that the partnership which sought registration consists of more than twenty persons. We, accordingly, answer questions Nos. 1 and 3 in the affirmative and in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
