Minor's liability for partnership losses clarified: upon election to become a partner, the minor shares in losses. A minor who elects on attaining majority to become a partner takes the same share he was entitled to as a minor and, upon election, shares in losses as well as profits. If the partnership instrument foresees the minor becoming major and specifies distribution then it evidences changes in shares; where the instrument does not allow ascertainment of shares by reasonable construction it will not evidence the change. Instruction No.1161 is withdrawn and the revised position applies from the change occurring in the previous year relevant to assessment year 1982-83 onward.
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Provisions expressly mentioned in the judgment/order text.
Minor's liability for partnership losses clarified: upon election to become a partner, the minor shares in losses.
A minor who elects on attaining majority to become a partner takes the same share he was entitled to as a minor and, upon election, shares in losses as well as profits. If the partnership instrument foresees the minor becoming major and specifies distribution then it evidences changes in shares; where the instrument does not allow ascertainment of shares by reasonable construction it will not evidence the change. Instruction No.1161 is withdrawn and the revised position applies from the change occurring in the previous year relevant to assessment year 1982-83 onward.
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