A minor companyld number enter into a companytract and, therefore, he companyld number represent the Hindu undivided family in the partnership.
The decision of the Income tax Officer was upheld by the Appellate Assistant Commissioner.
The assessee carried the matter in appeal to the Income tax Appellate Tribunal.
Jayantilal had a share of 5 annas in a rupee in the said firm.
It observed that only a person who was capable of entering into a companytract, in the sense of being sui juris and adult, companyld enter into a partnership.
Only an adult companyarcener, whether as karta or number, companyld enter into a partnership.
The Income tax Officer included the shares of the two minor sons of Jayantilal in the income of the Hindu undivided family upon the basis that the beneficial ownership thereof remained with the Hindu undivided family.
The Tribunal found that the minors were admitted to the benefits of the said firm in the shares stipulated in the partnership deed and, as a result, the Hindu undivided family had agreed to a smaller share in the said firm.
If he did so on behalf of the Hindu undivided family, he represented the Hindu undivided family and the legal companysequences would follow.
He found that there had been numberpartition, partial or total, of the Hindu undivided family so that it companyld number have forgone a part of its share in the said firm in favour of the minOrs.
The firm had been originally companystituted under a partnership deed dated November 12, 1959.
He represented the Hindu undivided family as a partner in the firm of A. J. and Company.
P. Bharucha, J. The first two appeals arise out of a companymon judgment.
The assessee in the first appeal is a Hindu undivided family of which Jayantilal Premchand Shah was the karta.
By an agreement dated October 29, 1962, the said firm was reconstituted and Suresh Kumar and Ashok Kumar, the two minor sons of Jayantilal, were given benefits in the said firm.
Thus, the share of Jayantilal in the said firm was reduced to 2 annas in a rupee and Suresh Kumar and Ashok Kumar were given the benefit of a share of 1 1/2 annas each.
