https://www.taxtmi.com/caselaws?id=277231 Partnership capacity under Section 239 of the Indian Contract Act does not extend to a firm, because a firm is a collective name for its individual partners rather than a separate legal person. A registered firm therefore cannot itself enter into partnership with other firms. Recognition of a firm as a taxable person under the Income-tax Act, 1922 does not change that contractual position. However, invalidity of the purported partnership does not alone determine taxability: profits received or credited remain the firm's income where the underlying funds truly belong to that firm, rather than to its partners individually. en-us Fri, 22 Apr 1932 00:00:00 +0530 Thu, 29 Nov 2018 14:42:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277231 Partnership capacity under Section 239 of the Indian Contract Act does not extend to a firm, because a firm is a collective name for its individual partners rather than a separate legal person. A registered firm therefore cannot itself enter into partnership with other firms. Recognition of a firm as a taxable person under the Income-tax Act, 1922 does not change that contractual position. However, invalidity of the purported partnership does not alone determine taxability: profits received or credited remain the firm's income where the underlying funds truly belong to that firm, rather than to its partners individually. Case-Laws Income Tax Fri, 22 Apr 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277231