Law:

Section:

Firm-Registration-Partnership between adults and a minor represented by guardian-Minor made liable for profits and losses- Deed signed by minor himself-Validity of partnership-Whether partnership can be registered-Guardian's right to enter into partnership-Income-tax Act (XI of 1922), Ss. 26-A, 66(1 )-Income-tax Rules, rr. 2, 3, 5-Contract Act (IX of 1872), Ss. 10, 11 & 23 Partnership Act (IX of 1932), S. 30-Reference-Power of High Court to consider question from all aspects.   A firm was constituted of A, B, C and D. The fourth partner D was described as a minor represented by his natural father and guardian E, but the deed of partnership was signed by A, B and C and the minor D himself. The deed provided that the minor was admitted to the benefits of partnership but it contained a further provision that "the profit and loss as may accrue from year to year . . . should be divided between and borne by the partners according to their shares". The question being whether the firm can be registered under section 26-A of the Income-tax Act, 1922   Held, that the signature of the minor D would not make it a contract binding on the minor and a minor cannot enter into a valid partnership with others; the fact that the minor was represented by his guardian would not make the agreement valid, as a minor could only be admitted to the benefits of a partnership under the law and could not be made a partner even by his guardian ; and the Income-tax Authorities were, therefore, justified in refusing registration of the firm under section 26-A.   [Legal incidents of a partnership to which minors are admitted and the object and scope of section 26-A of the Act and rule 5 of the Income-tax Rules discussed].   The right to apply for the registration of a firm under section 26-A is to be determined exclusively by reference to the prescriptions laid down therein and it would be repugnant to the character of such a right to add to the terms of section 26-A by reference to other laws.   While section 66, Income-tax Act, 1922, only confers jurisdic tion on the High Court to permit a reference on a question of law arising out of the order of a…