assessment of firm

[Ritesh Jha]

can individual,firm and company be partners???as firm cannot be partner ,still there are two persons(which are considered for the purpose of partnership act as partners) in this case in ratio of 3:2:1.the 1/6 share is for partnership firm ,so whther this body can be assessed as firm??????

AI Summary

Can an Individual, Company, and Firm Form a Partnership Under Indian Tax Law? Explore Section 78 Implications. A discussion took place regarding whether a partnership involving an individual, a company, and a firm can be assessed as a partnership under Indian tax law. It was clarified that a partnership can exist between an individual and a company, as they are considered natural and legal persons, respectively. However, a partnership firm itself is not a legal entity. The assessment depends on the mutual agency test, where each partner can bind the other. The firm can be assessed as a partnership, but interest and remuneration to a firm partner are not allowed. Further queries addressed sub-partnership income transfer, setting off losses, and applicability of Section 78 regarding partner changes.