Partnership deed validity and registration depend on adult partners' shares and minor's benefits, not on prior business commencement.

A minor cannot be a full partner, but may be admitted only to the benefits of partnership; a deed is not void merely because it describes the minor as a partner if, on proper construction, the adult signatories are the true partners and the minor receives only the benefits of the firm. Registration under section 26A also is not barred because the written partnership deed was executed after business had already begun. A pre-existing oral partnership may later be reduced into writing, and the decisive requirements remain a valid instrument of partnership specifying the partners' shares and a firm capable of being recorded in that instrument.

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Issues: (i) Whether a partnership deed describing a minor as a partner was void and incapable of supporting registration under section 26A. (ii) Whether a firm that commenced business before execution of the written partnership deed could still be registered under section 26A.

Issue (i): Whether a partnership deed describing a minor as a partner was void and incapable of supporting registration under section 26A.

Analysis: A minor cannot be made a full partner in a business, but can be admitted only to the benefits of partnership. On a proper construction of the deed, the adult signatories became the partners and the minor was admitted only to the benefits of the firm. The mere description of the minor as a partner did not render the instrument void or prevent the formation of a valid partnership among the adults.

Conclusion: The deed was not void, and a valid partnership existed between the three adult partners with the minor admitted to the benefits of the partnership.

Issue (ii): Whether a firm that commenced business before execution of the written partnership deed could still be registered under section 26A.

Analysis: Section 26A requires that the firm be constituted under an instrument of partnership specifying the individual shares of the partners. It does not require that the firm must have come into existence only because of the instrument or that the instrument must be executed before the business starts. A pre-existing oral partnership may later be reduced into writing, and if the written instrument records the firm and specifies the shares, registration is not barred merely because the deed was executed later or recites an earlier commencement date.

Conclusion: The firm was registrable from the date it actually came into existence, even though the written instrument was executed later.

Final Conclusion: The reference was answered in favour of the assessee, holding that the partnership was valid as between the adult partners and that registration could not be denied merely because the deed was executed after the business had already commenced.

Ratio Decidendi: For registration under section 26A, the decisive requirements are a valid instrument of partnership specifying the partners' shares and a firm capable of being constituted by that instrument or recorded therein; a minor's admission to benefits does not invalidate the deed, and prior business commencement does not by itself bar registration.

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