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THE COMMISSIONER OF INCOME-TAX, BOMBAY v. M/S. DWARKADAS KHETAN & CO.

Supreme Court of India | Diary 25/1959

Status

Judgment

Decided On

1960-12-01

Bench

HIDAYATULLAH, M.

Petitioner

THE COMMISSIONER OF INCOME-TAX, BOMBAY

Respondent

M/S. DWARKADAS KHETAN & CO.

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Full Judgment Text

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PETITIONER: THE COMMISSIONER OF INCOME-TAX, BOMBAY

Vs.

RESPONDENT: M/S. DWARKADAS KHETAN & CO.

DATE OF JUDGMENT: 01/12/1960

BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. KAPUR, J.L. SHAH, J.C.

CITATION: 1961 AIR 680 1961 SCR (2) 821 CITATOR INFO : E 1966 SC 15 (8) MV 1966 SC1490 (23)

ACT: Income Tax--Partnership firm including minor, if can be registered--Indian Income-tax Act, 1922 (11 of 1922), S. 26A--Indian Partnership Act, 1932 (IX of 1932), s. 30.

HEADNOTE: One of the persons who entered into a partnership was a minor and in the instrument of partnership he was described as a full partner with equal rights and obligations with the other adult partners. The deed of partnership which was signed by the minor was produced before th e Registrar of Firms f or registration and he granted a certificate showing the minor as a full partner and not as one entitled merely to the benefits of the partnership. The Income-tax Officer, however, refused to register the firm under S. 26A of the Indian Income-tax Act and his decision was upheld by the Income-tax Authorities and the Income-tax Appellate Tribunal. The High Court differed from the Tribunal and held that the firm should be registered. On appeal by the Commissioner of Income-tax, Held, that the Rules framed under S. 26A quite clearly show that a minor who is admitted ...

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