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narendra.s.p (Chief Manager(Law))     19 June 2013

Huf partner

Can there be a partnership firm with HUF as one of the partner?


 3 Replies

Adv Archana Deshmukh (Practicing Advocate)     19 June 2013

No. HUF cannot be a partner. The relation of partnership arises from contract and not from status. However, a karta acting on behalf of a HUF can enter into valid partnership

narendra.s.p (Chief Manager(Law))     21 June 2013

Thanks for your answer, please confim that we can rely on the foillowing observations of the Supreme Court and if there are any other judgments please share.

As observed by the Supreme Court in the case of Commissioner of Income Tax V/s Figiges & Comp. (1953) 24 ITR 405 and in the case of Dulichand Laxminarayan V/s Commissioner of Income Tax – AIR 1956 SC 354 – A   firm is not a "person" and as such was not entitled to enter into a partnership with another firm or an HUF 

MANOJ HARIT (LAWYER)     23 June 2013

HUF can be a Partner in Partnership Firm. One of my family Firm has HUF Partners. 

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