1976 (5) TMI 27

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.... The share of profit due to the minors shall not be withdrawn till they attain majority and they will bear interest at 12 per cent." 3. On this clause the ITO found that the liability of the minors to contribute to the losses having been made subject to the provisions of s.30 of the Indian Partnership Act, 1932, there is a void in the shareing of losses inasmuch as the two adult major partners are made to contribute to the losses of the firm only to the extent of an aggregate of 50 per cent, that aggregate having been worked out on the basis that each major partner has to contribute only to one-fourth share of the losses. The ITO observed that it is by now well established that it is necessary to specify the loss sharing ratio between th....

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....ase. So this is not a case where minors are personally made liable for losses. There is therefore no defect on that score. We over-rule that objection of the departmental representative. 7. The next argument of the departmental representative is that each of the two adult partners had agreed to contribute only one fourth share of losses, that therefore, the two adult partners are to contribute only to the extent of 50 per cent of the losses and that the rest of the loss to the firm is left unprovided for. The submission of the assessee is that if the clause in the partnership deed is reasonable construed, it is case where provision is made for the partners to equally share the profits and losses subject to the provisions of s. 30 of the ....