https://www.taxtmi.com/caselaws?id=25583 An excise licence condition prohibiting induction of new partners without prior written permission operates as a real legal restriction, not a mere revenue control, because breach can trigger cancellation, suspension, and penal consequences. In the context of liquor trade, such an arrangement may offend public policy and section 23 of the Contract Act where it permits entry of outsiders contrary to the statutory scheme. A firm formed in violation of that restriction is treated as illegal and therefore cannot meet the requirement of a valid firm for registration under the Income-tax Act. en-us Fri, 09 Jan 1987 00:00:00 +0530 Fri, 29 Jan 2010 15:37:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25583 An excise licence condition prohibiting induction of new partners without prior written permission operates as a real legal restriction, not a mere revenue control, because breach can trigger cancellation, suspension, and penal consequences. In the context of liquor trade, such an arrangement may offend public policy and section 23 of the Contract Act where it permits entry of outsiders contrary to the statutory scheme. A firm formed in violation of that restriction is treated as illegal and therefore cannot meet the requirement of a valid firm for registration under the Income-tax Act. Case-Laws Income Tax Fri, 09 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25583