1991 (9) TMI 35

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....n referred to us under the provisions of the Income-tax Act, 1961, reads as follows : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the minors admitted to the partnership should not be taken into account in finding out whether the number of partners exceeded the maximum number of twenty who would constitute the firm ? " Th....

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.... this reference at the instance of the Revenue. Under the provisions of the Indian Partnership Act, a minor cannot be a partner because a minor is not competent to enter into any contract. A minor can only be admitted to the benefits of the partnership. Therefore, the law which enables the formation of a partnership, that is, the Partnership Act does not recognise a minor as a partner at all wh....

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....p are individually called partners and collectively a firm and the name under which the business is carried on is called the firm name. Partnership is, as such, the result of a contract. A minor, not being competent to enter into a contract, is incapable of becoming a partner, although he can be admitted to the benefits of partnership. The Hon'ble Supreme Court in CIT v. Dwarkadas Khetan and Co. [....