Law:

Section:

Section 184 of the income-tax act, 1961-Firm-registration-entitlement to-Assessee-firm's partnership deed, as originally executed, stipulated terms regarding profit/loss sharing ratio and capital contribution of minor in event of his attaining majority and opting to become Partner-Minor, on attaining majority, exercised said option which was accepted by other partners by separate letters but no fresh deed executed-whether assessee-firm entitled to registration-Held, on facts, yes Facts The assessee-firm's partnership deed stipulated terms regarding profit/loss sharing ratio and capital contribution qua the minor in the event of his becoming major and opting to become partner. On the minor becoming major, no fresh deed was executed. He, however, intimated the other partners about his option to become a partner on the same terms and conditions as were settled in the original partnership deed. The other partners accepted the minor's election to be a partner by their separate letters. The assessee's application for its registration was refused by the 1TO and the AAC, the tribunal, however, directed the 1T6 to grant the registration. Held An instrument of partnership can be one single document or a number of documents reading together stipulating the rights and duties of the parties as well as their profit-sharing ratio. In the instant case, the assessee-firm could not be denied registration on the ground that no partnership deed was executed. In fact, as soon as the minor attained majority, he intimated to the other partners that he had elected to become a partner in the firm and that he would agree with terms and conditions of the original deed. Further, the remaining partners had accepted by letters the minor's election to be a partner on the same terms and conditions as agreed between them in the original deed. Thus the original deed along with the letters passed between the partners were an instrument of partnership specifying the individual shares of the partners. Hence, the assessee was entitled to registration. Case referred to Badri Narain Kashi Prasad v. Addl. CIT [1978] 115 ITR 858 (All.). Judgment MUKHARJI, J. - For the assessment years 1968-69 and…

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