Whether huf can become partner in partnership firm
Ankur Singhal
(Querist) 15 February 2017
This query is : Resolved
There are many confusion and many favourable & unfavourable decision of courts but doubt is still pending. Whether a HUF can become the partner in a Partnership Firm.
Hemant Agarwal
(Expert) 15 February 2017
1. HUF is a separate "legal entity".
2. Partnership Firm is also a separate "legal entity".
3. IF the preamble /objectives of a HUF permits becoming "partner" in a Partnership Firm, THEN the HUF can become Partner in a Partnership Firm.
4. The revolving residual "karta" of HUF, will be the Nominee-Partner in a Partnership Firm.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
kavksatyanarayana
(Expert) 15 February 2017
Agreed with the advise of Mr.Hemant Agarwal sir.
Ms.Usha Kapoor
(Expert) 16 February 2017
Agree with Hemanth Agawal Sir.
Ankur Singhal
(Querist) 16 February 2017
Still not satisfied. If you go through various cases on the google, You came to know that in many cases, judgement was said that in reality HUF is not a separate entity different from Karta. A karta can became a partner in his own name representing the HUF but HUF can not became partner directly in the name of HUF. For Example: There is a HUF Firm named Ravi & Sons and their Karta is Mr. Ravi. Ravi can be a partner in XYZ & Co. in the name of Ravi representing his HUF but directly Ravi & Sons (HUF) can not became a partner in the name of Ravi & Sons (HUF).
But Confusion is arise because in reality there are many instances where the partner is directly a HUF Firm and registrar also registered that partnership firm. Also Income Tax Department has not raised any issue. But in court cases, court denied that HUF can not became a partner in the partnership firm.
Hemant Agarwal
(Expert) 17 February 2017
IN LIEU OF "Still not satisfied"
INTROSPECT ON THIS:
"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Rajendra K Goyal
(Expert) 18 February 2017
Show all documents and discuss in detail with local lawyer.
Ankur Singhal
(Querist) 21 February 2017
Real example of my query. There are a partnership firm say, ABC & Co. Mr. Ram, Shyam and Mohan are the partners of the firm. Ram, Shyam and Mohan also make HUFs as Ram & Sons (HUF), Shyam & Sons (HUF) and Mohan & Sons (HUF). These HUFs are also admitted as partner in ABC & Co.
Now, The total no. of partners of ABC & Co. are as follows:
1. Ram
2. Ram & Sons (HUF)
3. Shyam
4. Shyam & Sons (HUF)
5. Mohan
6. Mohan & Sons (HUF)
It shows that partners deliberately reduce the shares in partnership firm to avoid various provisions of laws.
