Minor admitted only to partnership benefits validly supports firm registration where the deed excludes full partner status.

A partnership deed was construed as a whole to determine whether a minor was made a full partner or only admitted to the benefits of partnership. Because the clauses on losses, working partners, and the minor's role showed no liability for losses and no status as a working partner, the deed was treated as valid for admitting the minor only to the benefits of partnership. The guardian's participation did not invalidate the arrangement, as a guardian may lawfully secure such admission. The firm was therefore entitled to registration under section 26A of the Indian Income-tax Act, and the reference was answered in favour of the assessee.

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Issues: Whether the assessee-firm was entitled to registration under section 26A of the Indian Income-tax Act on the basis of the partnership deed, and whether the deed made the minor a full partner or only admitted him to the benefits of partnership.

Analysis: The deed had to be construed reasonably as a whole. The clauses relating to sharing of losses, designation of working partners, and the minor's position showed that the minor was not made liable for losses and was not given the status of a working partner. The provisions allowing the guardian to participate in the arrangement did not invalidate the deed, because a guardian may lawfully secure admission of the minor to the benefits of partnership. The objection that the guardian could not agree to the constitution of the firm was rejected as there was no legal bar to such an arrangement when the minor was not made a full partner.

Conclusion: The assessee-firm was held entitled to registration, and the question referred was answered in the affirmative, in favour of the assessee.

Ratio Decidendi: A partnership deed admitting a minor only to the benefits of partnership, and not making the minor a full partner, is valid if reasonably construed as securing those benefits through the guardian.

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