Law:

Section:

Section 184(7) of the Income-tax Act, 1961 - Firm - Registration - Contin-uation of - Assessment year 1971-72 - Whether where a minor is admitted to benefits of partnership, deed of partnership need not be signed by guardian of minor and fact that deed had not been signed by such guardian would not be fatal to validity of deed to allow registration to firm - Held, yes - Whether where a minor was admitted to benefits of partnership on a condition that he was required to contribute capital along with other full-fledged partners, such condition could not be a ground to refuse registration - Held, yes FACTS In the previous year pertaining to the assessment year 1971 -72, the assessee-firm admitted a minor to the benefits of the partnership. The new deed was signed by all the partners but not signed by the guardian of the minor. However, the minor was asked along with other full-fledged partners to contribute capital. The assessee filed an application in Form No. 11A for the registration. The ITO declined to grant registration on the ground that there was no change in the constitution of the firm. The assessee filed an application under section 184(7). The registration was refused on the grounds that although the minor was admitted to the benefits of the partnership, the deed of partnership was not signed by the guardian of the minor and that the minor was also required to contribute capital. However, on appeal, the AAC, following his orders for the earlier assessment years, allowed the registration. On appeal by the revenue, the Tribunal upheld the order of the AAC. On reference: HELP It is now well settled that where a minor is admitted to the benefits of the partnership, the deed of partnership need not be signed by the guardian of the minor and the fact that the deed had not been signed by such guardian, would not be fatal to the validity of the deed. As regards the other ground of capital contribution by the minor, a minor could be asked along with other full-fledged partners to contribute capital and the guardian on behalf of the minor could also enter into such agreement on behalf of the minor. So long as the minor was not admitted as a full-fledged partner,…

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