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of <h1>Minor's partnership in firm with guardian's consent deemed invalid; High Court rules in favor of Commissioner of Income-tax</h1> <h3>Banka Mal Lajja Ram & Co. Versus Commissioner of Income-tax</h3> Banka Mal Lajja Ram & Co. Versus Commissioner of Income-tax - [1953] 24 ITR 150 (PUNJ.) Issues:1. Whether a minor son can enter into a partnership through his mother, the natural guardian, even with the consent of the other partnersRs.Analysis:The case involved a partnership deed where a minor son was made a partner through his mother, the natural guardian. The Income-tax Appellate Tribunal referred the question of the validity of this partnership to the High Court. The partnership deed stated that the minor son would be a partner with equal rights and liabilities as the other partners. The Income-tax authorities rejected the registration of the partnership under Section 26A of the Indian Income-tax Act, leading to an appeal. The Tribunal held that the partnership was not valid as a minor had become a partner, not merely admitted to the benefits of the partnership.The applicant argued that the partnership deed should be interpreted such that the minor son was deemed to have been admitted to the benefits of the partnership, not as a full partner. Citing precedents, the applicant contended that a minor being included in a partnership does not invalidate it if the minor is treated as having been admitted to the benefits of the partnership. However, the Tribunal's finding was that the minor had become a full partner, and the partnership was invalid. The High Court emphasized that under Section 30 of the Partnership Act, a minor cannot be a full partner in a firm, making the contract with a minor as a partner invalid and unregistrable under Section 26A of the Income-tax Act.The High Court highlighted that the jurisdiction of the Court is limited to the questions referred by the Tribunal and cannot be expanded to consider additional interpretations or issues not raised initially. The Court cited previous judgments to support the notion that the High Court's role is advisory and confined to answering the questions referred. Consequently, the Court concluded that a minor cannot enter into a partnership through his guardian, even with the consent of other partners, as it contravenes Section 30 of the Partnership Act. The judgment was in favor of the Commissioner of Income-tax, who was awarded costs of the reference.In conclusion, the High Court ruled that a minor cannot enter into a partnership through his guardian, even with the consent of other partners, as it violates the provisions of Section 30 of the Partnership Act. The partnership deed where a minor was made a full partner was deemed invalid, and registration under the Income-tax Act was disallowed. The Court's decision was based on statutory provisions and legal precedents, emphasizing the incapacity of a minor to be a full-fledged partner in a partnership firm.
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