1990 (7) TMI 95

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....view that the assessee firm (consisting of 17 adult partners and 4 minors admitted to the benefits of partnership) was not illegal in terms of section 11 of the Companies Act, 1956 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the assessee-firm was entitled to registration under the Income-tax Act, 1961 ?" The assessee-firm, consisting of 17 major partners and 4 minors who were admitted to the benefits of partnership, was constituted, vide partnership deed dated October 12, 1965, and was duly registered. It was assessed for the assessment years 1966-67 and 1967-68, in the status of a registered firm. The Income-tax Officer, however, in exercise of his powe....

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.... the Companies Act. As observed earlier, the Appellate Tribunal has referred the aforesaid two questions at the instance of the Department for the opinion of this court. The Act has adopted the definitions of "firm", "partner" and "partnership" given in the Indian Partnership Act. Section 2(23) of the Act is quoted below: "(23) 'firm', 'partner' and 'partnership' have the meanings respectively assigned to them in the Indian Partnership Act, 1932 (9 of 1932) ; but the expression 'partner' shall also include any person who, being a minor, has been admitted to the benefits of partnership." According to section 4 of the Indian Partnership Act, partnership is the relation between persons who have agreed to share the profits of business ....