Partnership act and income tax act
C. P. CHUGH
(Querist) 25 July 2012
This query is : Resolved
Dear Xperts,
In the Light of the following judgements of Hon'ble Apex Court, an HUF cannot be a partner in any firm.
My question what is position where the HUF entered into partnership through Karta
before these judements.
Will it continue to be partner,
will it cease to be partner from such date,
Pls advise.
"The Supreme Court of India held (AIR-1930-PC-300 & AIR1956-SC-854) - HUF isan association of persons is "not a person" within the meaning of expression in thePartnership Act. "… it is now well settled that HUF cannot enter into contract of partnership with another person or persons."The Supreme Court of India, in another case M/s Rasiklal & Co Vs Commissioner of held that "…………. an HUF directly or indirectly cannot become a partner of a firm because the firm is an association of individuals." "…….in law, an HUF can never be a partner in partnership firm"
