https://www.taxtmi.com/caselaws?id=193445 Co-owners of partitioned joint-family property do not constitute a partnership merely because they agree to share rent and one member manages the properties. A valid partnership requires an agreement, a real business activity, and agency between the parties; the substance of the arrangement, not its label, is decisive. Where the arrangement is limited to collecting rent from partitioned properties and no genuine business is carried on, the group is not treated as a partnership for income-tax registration. On the facts stated, the assessee was not carrying on business and was not entitled to registration under section 26A of the Income-tax Act, 1922. en-us Tue, 28 Oct 1958 00:00:00 +0530 Sat, 29 Jul 2017 16:28:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193445 Co-owners of partitioned joint-family property do not constitute a partnership merely because they agree to share rent and one member manages the properties. A valid partnership requires an agreement, a real business activity, and agency between the parties; the substance of the arrangement, not its label, is decisive. Where the arrangement is limited to collecting rent from partitioned properties and no genuine business is carried on, the group is not treated as a partnership for income-tax registration. On the facts stated, the assessee was not carrying on business and was not entitled to registration under section 26A of the Income-tax Act, 1922. Case-Laws Income Tax Tue, 28 Oct 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193445