Minor admitted only to partnership benefits: inconsistent loss-sharing clause did not invalidate the deed, with year-wise registration split.

A deed admitting a minor only to the benefits of partnership did not make the minor a full partner where personal liability was excluded, but a clause stating that losses would be shared in the same proportions was inconsistent with section 30 of the Indian Partnership Act, 1932. The inconsistent loss-sharing term could be ignored while preserving the genuine partnership between the adult partners, so the instrument was not invalidated as a whole. The earlier Supreme Court decision was distinguished because it treated the minor as a full partner. Registration was denied for assessment year 1953-54, but allowed for assessment year 1954-55.

---

---

Issues: Whether a firm was entitled to registration under section 26A of the Indian Income-tax Act, 1922 for the assessment years 1953-54 and 1954-55 where the deed admitted a minor to the benefits of partnership but also contained a clause that losses would be shared in like proportions.

Analysis: The deed expressly stated that the minor was admitted only to the benefits of the partnership and that his liability was not personal, so he was not made a full partner. The presence of a further clause providing that losses would be shared in the same proportions was treated as an erroneous term inconsistent with section 30 of the Indian Partnership Act, 1932, but not as a feature that necessarily invalidated the entire instrument. The document could still be given effect to the extent consistent with law by ignoring the minor's share in losses while preserving the genuine partnership arrangement among the adult partners. The earlier Supreme Court decision was distinguished because, there, the minor had been treated as a full partner with no distinction from the adults.

Conclusion: Registration was not available for the assessment year 1953-54, but it was available for the assessment year 1954-55. The question was answered against the assessee for one year and in its favour for the other.

---