https://www.taxtmi.com/caselaws?id=172353 A mere right to receive and share commission did not amount to a partnership, because the parties were not carrying on a business together and the employment of staff and maintenance of accounts served only to verify and safeguard receipt of income. Under the Partnership Act, sharing profits or common receipts alone does not create a firm unless there is active business activity by the parties. On the facts, the relationship was treated as co-ownership or an association of persons rather than a partnership, and as no valid firm existed, registration under section 26A of the Income-tax Act, 1922 was not available. en-us Mon, 17 Feb 1964 00:00:00 +0530 Wed, 19 Aug 2015 16:20:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172353 A mere right to receive and share commission did not amount to a partnership, because the parties were not carrying on a business together and the employment of staff and maintenance of accounts served only to verify and safeguard receipt of income. Under the Partnership Act, sharing profits or common receipts alone does not create a firm unless there is active business activity by the parties. On the facts, the relationship was treated as co-ownership or an association of persons rather than a partnership, and as no valid firm existed, registration under section 26A of the Income-tax Act, 1922 was not available. Case-Laws Income Tax Mon, 17 Feb 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172353