https://www.taxtmi.com/caselaws?id=6282 A partnership deed was held valid where the former proprietary business was converted into a partnership with defined profit and loss shares. The Supreme Court treated the essential test as whether there was an agreement to share profits or losses and whether the business was carried on by one or more partners acting for all. Clauses giving one partner predominant management control, and restricting the others from borrowing, pledging, or otherwise dealing with the firm's interest without authority, did not destroy the partnership relation because mutual rights and agency may be regulated by contract. The firm was therefore entitled to registration under section 26A. en-us Mon, 11 Oct 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6282 A partnership deed was held valid where the former proprietary business was converted into a partnership with defined profit and loss shares. The Supreme Court treated the essential test as whether there was an agreement to share profits or losses and whether the business was carried on by one or more partners acting for all. Clauses giving one partner predominant management control, and restricting the others from borrowing, pledging, or otherwise dealing with the firm's interest without authority, did not destroy the partnership relation because mutual rights and agency may be regulated by contract. The firm was therefore entitled to registration under section 26A. Case-Laws Income Tax Mon, 11 Oct 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6282