1991 (10) TMI 23

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....n' and 'member' occurring in section 11(2) of the Companies Act, 1956, would include a minor admitted to the benefits of partnership ? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in law in holding that the assessee should be assessed as a registered firm?" During the relevant years of assessment, except for the year 1975-76, the partnership which is the assessee was having 15 partners and six minors admitted to the benefits of partnership. For the year 1975-76, the partnership consisted of 14 partners and seven minors admitted to the benefits of the partnership. The Income-tax Officer was of the view that the minors admitted to the benefits of the partnership, going by....

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....rgument of the Revenue cannot be taken cognisance of. The Revenue, thereupon, moved a petition under section 256(1) of, the Income-tax Act seeking reference of the above questions which, according to the Revenue, arise out of the order of the Tribunal. The Tribunal was of the view that the questions are questions of law arising out of the order of the Tribunal and, accordingly, referred them to this court for being dealt with in accordance with law. The common law principle that a minor, not being competent to enter into a contract, is incapable of becoming a partner, is not altered by the Income-tax Act. On the other hand, that the said principle has been recognised by that Act is clear from the provisions contained in subsection (3)....