SAHAI BROTHERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this case the assessee is a firm constituted of Sri Kamleshwari Sahai and thirteen other family members. The assessment year is 1950-51 and the corresponding accounting year is the financial year 1949-50. During the assessment year the assessee applied for registration of the

(2.) At the instance of the assessee the Appellate Tribunal has made a statement of the case under Section 66 (1) of the Income-tax Act on the following question of law :

(3.) On behalf of the assessee Mr. Dutta put forward the argument that the Appellate Tribunal has taken an erroneous view of the law and that the partnership constituted by the document dated 22nd May, 1949, should have been registered under Section 26-A of the Income-tax Act It was submitted that merely because two minors were included in the partnership deed the contract of partnership as between the adult partners could not become invalid, and as a matter of construction it ought to be held that there was a valid partnership between the adult partners and the two minors were admitted to the benefits of that valid partnership. The argument put forward by learned Counsel for the assessee is well founded and must be accepted as correct. Under Section 30 of the Partnership Act it is open to the partners to admit a minor to the benefits of the partnership. Reference may be made to Section 30 of the Partnership Act on this point. Section 30 enacts :