Law:

Section:

Section 184 of the Income-tax Act, 1961 [Corresponding to section 26A of the Indian Income-tax Act, 1922] - Firm - Position prior to 1-4-1993 - Whether a woman can act as manager of a joint family estate in which she has a personal interest - Held, yes - Whether therefore woman is competent to enter into contract of partnership in her representative capacity as karta of HUF consisting of herself and minor sons - Held, yes FACTS 'R' carried on a business in partnership with his three brothers. Their firm had been constituted by a deed of partnership and used to be annually registered for income-tax purposes. After the demise of 'R', his widow 'K' and the three surviving brothers entered into a fresh agreement of partnership whereby they agreed to carry on the business as partners with equal shares. The deed of partnership expressly described her as a partner in her capacity as manager of the family of the heirs of the deceased as an equal partner in place of her husband. The deed was offered for registration in connection with the firm's assessment but the ITO declined to register it holding that no genuine firm had come into existence by virtue of the deed in question because one of the parties, 'K', was incompetent to enter into the partnership as manager. On appeal, the AAC took a different view observing that there was nothing to prevent the lady, being the de facto manager, from being recognised and accepted as a partner on that basis. He accordingly set aside the ITO's order and directed registration. The Tribunal upheld the order of the AAC. On reference : HELD It is improper and unjustifiable to say that a woman is inherently incompetent to be the manager of a joint family, because there are some obsolete and antediluvian texts which contain disparaging remarks about woman, in total disregard of the needs of modern society and the vast changes in Hindu law. There is nothing to prevent a female from being the manager of a religious endowment, though she cannot perform any spiritual functions. If a female can act as the manager of a religious endowment in which she has no personal interest, there is apparently no reason why she cannot act as the manager of…

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