TaxTMI 
TaxTMI 
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??????
assessment of firm
21 Aug 2011 
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Mutual agency determines whether a partnership with a company and an individual is treated as a firm for tax purposes.
A partnership may include natural and legal persons; an individual and a company can be partners, but a partnership firm is not a separate legal entity. Assessment as a firm depends on the constitution and whether the test of mutual agency is satisfied. Where a firm is treated as a partner alongside an individual and a company, the arrangement was treated as a partnership of the individual and the company for assessment purposes, and interest or remuneration claimed for the entity-styled firm is not allowable under income tax disallowance principles. (AI Summary)
A partnership may include natural and legal persons; an individual and a company can be partners, but a partnership firm is not a separate legal entity. Assessment as a firm depends on the constitution and whether the test of mutual agency is satisfied. Where a firm is treated as a partner alongside an individual and a company, the arrangement was treated as a partnership of the individual and the company for assessment purposes, and interest or remuneration claimed for the entity-styled firm is not allowable under income tax disallowance principles. (AI Summary)