Y L AGARWALLA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE facts found and/or admitted in this reference at the instance of the assessee, Messrs. Y. L. Agarwalla and others, as appearing from the statement of the case and the annexures thereto may be shortly stated as follows :

(2.) CLAUSE 13 of the deed dated the 20th September, 1961, under which the said partnership of M/s. Grand Smithy Works used to be carried on provided as follows:

(3.) ON appeal the Appellate Assistant Commissioner agreed with the decision of the Income-tax Officer. The assessee went up on further appeal before the Tribunal. It was contended before the Tribunal that, in law, a minor could not represent the Hindu undivided family. It was contended that taking into account the fact that the widow and the other married daughters of the deceased did not remain connected with the partnership firm it ought to be held that the minors having been admitted to the benefits of the partnership were, in law, alone entitled to the share of profits from the firm. It was contended that the Hindu undivided family did not become a partner either legally or factually.