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TMI Blog1990 (11) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... d the partnership deed. According to him, the signature of the guardian of the minor on the partnership deed was necessary so that the guardian could obtain authority for the minor vis-a-vis the other partners to see that the minor's interest was property safeguarded. He relied on the decision of the Allahabad High Court in CIT vs. Uttamkumar Prabodkumar (1974) 97 ITR 730 (All). He rejected the proposal of the assessee to obtain the signature of the guardian of the minor. His attention was drawn to the Circular of the Board in which instructions had been given to permit amendments so as to bring the matter in conformity with the decision of the Allahabad High Court. However, according to him, the said instrument applied to only those cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant provisions would be required to be considered. 7. One such relevant provision is s. 30 of the Partnership Act which deals with minors admitted to the benefits of partnership. The gist of s. 30 is that a minor may not be a partner is a firm but with the consent of all partners for the time being, he may admitted to the benefits of partnership and that the minor has a right to such share of the property and the profits of the firm as may be agreed upon and he can have access to and inspect the accounts of the firm. It is further laid down therein that the minor's share is liable for the acts of the firm but the minor is not personally liable for any such acts. The minor has no right to sue the partners for an account of payment of hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the IT Act relevant to those of the Partnership Act. Sec. 184(1) lays down that application for registration of the firm may be made to the ITO if the partnership is evidenced by an instrument and the individual shares of the partners are specified in that instrument that such application should be signed by all the partners (not being minors) personality. It is further laid down that the application would be accompanied by the original instrument evidencing the partnership together with a copy thereof and the application should be made in the prescribed form and should contain the prescribed particulars. Rule 22 of the IT Rules, 1962 lays down that the application for registration should be signed by all the partners (not bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the minor was admitted to the benefits of partnership. The above inference which was drawn by the Allahabad High Court has not been accepted by the Andhra Pradesh High Court in Srinivas Steel, Moulding Works vs. CIT (1987) 63 CTR (AP) 291 : (1987) 167 ITR 1 (AP). On perusal of relevant provisions it is clear that the signature of the guardian of a minor on an instrument of partnership is a neutral circumstances which would neither fasten any liability nor create any right which are not otherwise conferred by law. There is no requirement in law obliging the guardian of a minor to sign the partnership deed on behalf of the minor and failure to do so would not vitiate registration of the firm/under the IT Act. The view which I have taken i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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