CAN AN HUF BE PROPRIETOR
Guest
(Querist) 01 November 2010
This query is : Resolved
THERE ARE SOME SUGGESTIONS THAT HUF CAN BE A PARTNER IN A PARTNERSHIP FIRM; BUT THIS IS NOT THE CORRECT PROPOSITION OF LAW I THINK, IN VIEW OF THE RASIKLAL DECISION RENDERED BY THE APEX COURT.
HOWEVER, KINDLY SUGGEST WHETHER AN HUF CAN BE A PROPRIETOR AND RUN A PROPRIETORSHIP CONCERN AS SUCH??
SUGGESTIONS ARE SOLICITED FROM AN EXPERT'S ANGLE.
A V Vishal
(Expert) 01 November 2010
No an HUF cannot act as a proprietor.
Guest
(Querist) 02 November 2010
WILL YOU PLEASE TAKE PAINS TO EXPLAIN, IF POSSIBLE. I MEAN WHY NOT, IS THERE ANY BARRING PROVISION ETC?
B.R. BHALLA, ADVOCATE
(Expert) 04 November 2010
Section 2 (31) of the IT Act, 1961 defines "Person" and according to it, Person includes "A Hindu Undivided Family". If you go through the CST Act or VAT Act of the State, you will find that the term "dealer" is defined normally as " dealer" means any person including ..... Obvious, there is no bar in Karta of HUF running a proprietory business for and on behalf of the family. As regards, Karta of HUF entering into Partnership with any other individual, I have not gone through the judgement of Rasiklal. The earlier judgements of the Apex Court do not prohibit the Karta from entering into Partnership with any other individual but he would only be representing his HUF. Please refer to 39-ITR-202 and 66-ITR-613. However, a Karta of HUF cannot enter into partnership with himself as "individual".
Guest
(Querist) 06 November 2010
Thank you so very much sir.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 06 November 2010
We need persons like Bhalla on this section , otherwise other experts instead of going deep into the problem just putting I agree or I concur.
I may be criticized for this opinion but my humble request to all such experts that instead of agree or concur pl add some inputs just as Mr Bhalla has done.
Khaleel Ahmed
(Expert) 07 November 2010
Mr. Shashikumar if there is need to add some thing,definately expert can add. If there is nothing to be added just other experts can encourrage by endorsing I agree.This may not wrong.
Advocate. Arunagiri
(Expert) 07 November 2010
Agreeing with others opinion is also a opinion. By agreeing any experts reply the author gets confident of the original reply. Only when some thing needs to be modified we have to give a detailed reply.
