1986 (1) TMI 178

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. The assessee-firm was constituted by 5 adult partners and 3 minors. Of the 3 minors, two were clearly admitted to the benefits of the partnership only. In respect of another minor, Padmapriya, the deed made no distinction between her and the other adult partners and as per the partnership deed she had an interest of 20 per cent of profit and loss of the firm. The assessee-firm had started the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d not be made a full-fledged partner responsible for the losses of the firm also. Though she attained majority before the close of the accounting year, she still had time to give her options of whether she would become a partner or not. Her admission as a full-fledged partner when she was a minor was, therefore, not valid and the partnership cannot be registered. 5. The assessee appealed. The a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t, pointed out that six months as required by the Partnership Act have not elapsed after Padampriya became a major. Therefore, it is not possible to say that she had exercised her option of becoming a partner. But, we find that Form No. 11 containing the application for registration was filed on 28th June, 1979 and she has already signed that form like a full-fledged partner. On that date she was ....