9911796707
TMI Blog1987 (8) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... " 1. Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the partnership constituted by the karta and another member of the same Hindu undivided family and a stranger was not a valid partnership, so as not to be entitled to registration under section 185 of the Income-tax Act, is correct and justified in law ? 2. Whether, on the facts and in the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son, Vimal Kumar, and Gulabchand as partners. There was no partition between Ratanlal and his son, Vimal Kumar, and they continued to comprise a smaller Hindu undivided family of which Ratanlal as father was the karta. There was no investment of capital by Vimal Kumar in this partnership. The assessee-firm comprising of Ratanlal, Gulabchand and Vimal Kumar, as partners, applied to the Income-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has led to the reference for decision of the above questions of law arising out of the Tribunal's order. The point for decision is, whether a valid partnership can be constituted by the karta of a Hindu undivided family along with a stranger and another member of that Hindu undivided family. It is well-settled that there is no illegality in the formation of such a partnership inasmuch as it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the capital. This being so, the mere fact that one of the partners, Vimal Kumar, did not contribute to the capital and was a working partner could not invalidate an otherwise validly constituted partnership. The Tribunal was, therefore, not justified in taking the contrary view. Consequently, the reference is answered in favour of the assessee and against the Revenue as under : 1. The Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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