https://www.taxtmi.com/caselaws?id=38544 In a Hindu joint family business, absence of prior ascertainment or division of capital assets does not by itself negate a partial partition if the contemporaneous deed and surrounding conduct show an intention to sever joint status and transfer the business as a going concern. On those facts, the business can be treated as having passed out of the joint family into a valid partnership arrangement. The partnership's validity is not defeated merely because capital accounts were not formally worked out, provided the arrangement reflects real severance and formation of a partnership. The reference was answered in favour of the assessee, and registration under section 26A was upheld. en-us Fri, 11 Mar 1977 00:00:00 +0530 Wed, 07 Apr 2010 11:38:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38544 In a Hindu joint family business, absence of prior ascertainment or division of capital assets does not by itself negate a partial partition if the contemporaneous deed and surrounding conduct show an intention to sever joint status and transfer the business as a going concern. On those facts, the business can be treated as having passed out of the joint family into a valid partnership arrangement. The partnership's validity is not defeated merely because capital accounts were not formally worked out, provided the arrangement reflects real severance and formation of a partnership. The reference was answered in favour of the assessee, and registration under section 26A was upheld. Case-Laws Income Tax Fri, 11 Mar 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38544