1949 (9) TMI 31

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....nership ? (2) If Krishna Murari was admitted as a partner, could such a deed of partnership be registered under Section 26A of the Indian Income-tax Act, 1922, and the rules made under the Act ? and (3) Whether the application dated 23rd July, 1943, was in order regard being had to Rules 2-6B of the Indian Income-tax Rules, 1922 ?" The facts briefly are that Gajadhar Ram and Benarsi Lal were cousins. Gajadhar Ram had two sons, Sundar Mal and Jagdish Prasad. Sundar Mal is dead and his widow had adopted Krishna Murari, son of Jagdish Prasad. Gajadhar Ram, Benarsi Lal, Jagdish Prasad and Krishna Murari were members of a joint Hindu family, and on the 15th September, 1932, there was a partition between them and a deed of pa....

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....shna Murari was a minor, or if it was noticed by him he might have thought that it was a valid partnership. On the 26th July, 1943, an application under Section 26A for renewal of the partnership for the year 1942-43 was filed under the signatures of Gajadhar Ram, Benarsi Lal and Jagdish Prasad. Jagdish Prasad purported to sign for Krishna Murari deceased also. The application was dismissed by the Income-tax Officer on the 15th September, 1943. There was an appeal to the Assistant Commissioner who dismissed the appeal on the 13th January, 1945, and a further appeal to the Appellate Tribunal also failed. The Appellate Tribunal was of the opinion that the certificate given in the application under Section 26A that the constitution of the firm....

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.... this country, since a minor is incapable of entering into a contract, the contract on his behalf is void subject to such benefits that he may be entitled to get under Section 30 of the Indian Partnership Act. In the deed of partition dated the 15th September, 1932, it is mentioned that Benarsi Lal had in Sambat 1982 adopted Jagdish Prasad and in 1983 Sunder Mal died and Sundar Mal's widow adopted Krishna Murari in Sambat 1987. Under the Hindu law, therefore, the widow of Sundar Mal was the natural guardian of the minor, Krishna Murari. The deed of partnership was executed on behalf of Krishna Murari by his natural father Jagdish Prasad. After the adoption, Jagdish Prasad ceased to be the natural guardian of the minor and he had no r....