https://www.taxtmi.com/caselaws?id=6725 A real partnership was recognised where five brothers and two financiers entered a lawful mercantile arrangement for business and debt recovery. The court noted that partnership is not invalid merely because all partners do not contribute capital, since contribution may be by capital, skill, or both. It also held that unequal allocation of losses is not prohibited, and that a clause allowing profits to be applied towards discharge of a partner's debt did not make the partnership unreal. On the material before the authority, the reduced goodwill price likewise did not negate genuineness. The refusal to register the firm was therefore not justified in law, and registration was allowed. en-us Fri, 15 Jul 1966 00:00:00 +0530 Sun, 01 Feb 2009 12:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6725 A real partnership was recognised where five brothers and two financiers entered a lawful mercantile arrangement for business and debt recovery. The court noted that partnership is not invalid merely because all partners do not contribute capital, since contribution may be by capital, skill, or both. It also held that unequal allocation of losses is not prohibited, and that a clause allowing profits to be applied towards discharge of a partner's debt did not make the partnership unreal. On the material before the authority, the reduced goodwill price likewise did not negate genuineness. The refusal to register the firm was therefore not justified in law, and registration was allowed. Case-Laws Income Tax Fri, 15 Jul 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6725