Minor as partner in deed may still mean benefits-only admission, leaving the adult partnership valid and registerable.

A partnership deed remains valid between competent adult partners even if minors are described as partners, provided the deed can reasonably be construed as admitting the minors only to the benefits of partnership. Under section 30 of the Partnership Act, a minor cannot be a full partner but may be admitted to partnership benefits with consent; for income-tax purposes, a minor so admitted is treated within the expression "partner" under section 2(6B) of the 1922 Act. Clauses purporting to impose loss liability on minors do not alter their legal status. On that construction, the firm is registerable under section 26A.

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Issues: Whether, on a true construction of the partnership deed, a valid partnership existed between the adult partners so as to be registerable under section 26A of the Indian Income-tax Act, where two persons described as partners were minors.

Analysis: A minor cannot be a full-fledged partner in law, but under section 30 of the Indian Partnership Act, 1932, a minor may be admitted to the benefits of partnership with the consent of all the partners. Section 2(6B) of the Indian Income-tax Act, 1922 recognises that a minor admitted to the benefits of partnership is included within the expression "partner" for income-tax purposes. The deed, read as a whole, showed a valid contract of partnership between the adult members, while the clauses purporting to make the minors liable for losses could not operate against them because such liability is inconsistent with their legal status. The deed was therefore construed as admitting the minors only to the benefits of the partnership and not as making them full partners.

Conclusion: The firm was a valid partnership capable of registration under section 26A, and the question referred was answered in favour of the assessee.

Ratio Decidendi: A partnership deed that is valid between competent adult partners is not invalid merely because minors are described as partners; if the deed can reasonably be construed as admitting the minors only to the benefits of partnership, the firm remains registerable.

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