https://www.taxtmi.com/caselaws?id=272780 A partnership preceded by gifts to two daughters through book entries can be recognised as genuine where the gifts are real and effective and the partnership deed contemporaneously acknowledges the daughters' capital. The use of book entries does not by itself invalidate a gift; their sufficiency depends on the subject-matter and surrounding conduct. Registration of the firm, notice to banks, and the executed deed supported genuineness, and the daughters' lack of active management did not defeat the partnership because a partner may contribute capital without participating in administration. The assessee-firm was therefore entitled to registration under section 26A, and refusal to register was unjustified. en-us Tue, 15 Dec 1964 00:00:00 +0530 Thu, 17 May 2018 15:48:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272780 A partnership preceded by gifts to two daughters through book entries can be recognised as genuine where the gifts are real and effective and the partnership deed contemporaneously acknowledges the daughters' capital. The use of book entries does not by itself invalidate a gift; their sufficiency depends on the subject-matter and surrounding conduct. Registration of the firm, notice to banks, and the executed deed supported genuineness, and the daughters' lack of active management did not defeat the partnership because a partner may contribute capital without participating in administration. The assessee-firm was therefore entitled to registration under section 26A, and refusal to register was unjustified. Case-Laws Income Tax Tue, 15 Dec 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272780