Invalid partnership deed with a minor as full partner cannot support tax registration; factual findings in reference are binding.

A partnership deed admitting a minor as a full partner, including sharing of profits and losses, is invalid and cannot support registration under the Income-tax Act. The High Court also noted that, in a reference under section 256(1), it was bound by the Tribunal's factual finding that the partner was born on 27 September 1951 and was therefore a minor when the deed was executed on 10 September 1966. In the absence of a specific question challenging perversity or lack of evidence, the court could not reappraise that finding. On those facts, the deed was invalid for registration purposes and registration under section 185 was not available.

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Issues: Whether the deed of partnership was invalid and registration under section 185 of the Income-tax Act, 1961 could be granted when one of the partners was found to be a minor on the date of execution of the deed.

Analysis: The finding that the partner was born on 27 September 1951 was treated as a finding of fact based on the evidence accepted by the Tribunal. On that finding, he was a minor when the deed of partnership was executed on 10 September 1966. A partnership deed admitting a minor as a full partner, sharing profits and losses, is invalid and cannot support registration. In a reference under section 256(1) of the Income-tax Act, 1961, the High Court was bound by the Tribunal's factual findings and could not reappraise the evidence in the absence of a specific question on perversity or absence of evidence.

Conclusion: The Tribunal was right in holding that the deed of partnership was an invalid document and that registration under section 185 could not be granted; the question was answered in the negative and against the assessee.

Ratio Decidendi: In a reference, the High Court must accept the Tribunal's findings of fact unless a specific legal issue challenging those findings is referred, and a partnership deed admitting a minor as a full partner is invalid for registration purposes.

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