https://www.taxtmi.com/caselaws?id=277231 A registered firm cannot enter into a partnership in its own capacity because, under the Indian Contract Act, a firm is not a "person" but only a collective name for its partners. The article distinguishes that contractual incapacity from income-tax treatment: the Income-tax Act may assess a firm as a taxable entity, but that does not convert it into a legal person for partnership purposes. On the stated facts, profits credited through associated firms could not be treated as arising from a valid partnership in the firm's corporate capacity; the real inquiry remained whether the income belonged to the firm or to the individual partners. The reference was answered in favour of the assessee. 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 A registered firm cannot enter into a partnership in its own capacity because, under the Indian Contract Act, a firm is not a "person" but only a collective name for its partners. The article distinguishes that contractual incapacity from income-tax treatment: the Income-tax Act may assess a firm as a taxable entity, but that does not convert it into a legal person for partnership purposes. On the stated facts, profits credited through associated firms could not be treated as arising from a valid partnership in the firm's corporate capacity; the real inquiry remained whether the income belonged to the firm or to the individual partners. The reference was answered in favour of the assessee. Case-Laws Income Tax Fri, 22 Apr 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277231