...assessee in spite of notice. Learned Counsel for the Revenue submitted that in law, an HUF cannot be a partner and even if the family's nominee was a partner it cannot be held that the business carried on..., (1998) 229 ITR 458, to contend that an HUF cannot be a partner in a firm. Reference is also made to decisions in C.I.T v. Shiv Mohan Lal...and cannot enter into an agreement of partnership with either another HUF or individual. It is open to the Manager or Karta of a joint HUF as representing the family to agree to become a partner with...

...Haridas v. CIT [1960] 39 ITR 202 and other decisions on the point), it is clear that an HUF cannot be a partner in a firm. Only an...individual person in his own right can be a partner in a firm. Since an HUF cannot be a partner in a firm, whoever represents the HUF in the firm is a partner for all practical purposes both of...his own capacity a partner of the firm, is a creditor of the firm, them interest paid to the HUF must be allowed and it cannot be disallowed under s. 40(b) of the Act. Section 40(b) merely looks to the...

...HUF cannot be a partner in a firm ignoring the fact that the assessee HUF has been assessed for years as partner in the firm. 4. That the Ld. CIT(A) has erred in treating the...original return filed by the assessee on 1.10.2010 (as extended by the Board) as belated return on the incorrect ground that: i) An HUF cannot be a partner in a firm and accordingly...the instant case, the assessee is an HUF and not an individual, therefore working partner condition does not apply in this case as HUF cannot be a working partner. As per Section 139(1), the due date...

...partner as his representative capacity is to be ignored so far as the firm is concerned. But the reverse is not true, because the HUF as such cannot be a partner in a firm. We can refer to a large number...[1960] 39 ITR 202 (SC). It has been held in the said case that since an HUF cannot be a partner in a firm, whoever represents the HUF in a firm is the...allowed. The addition of Rs. 440 is vacated.3. As to add back of Rs. 976 it represented interest paid to bigger HUF of Shri Hem Raj, partner. We have repeatedly held that in such...

...holding 25% share, wherein learned PCIT was of the view that HUF cannot be partner in partnership firm and such payments of interest made to M/s Ashok Kumar Fomra (HUF) is liable to be disallowed owing...to the fact that HUF cannot be partner in the firm . It was observed by learned PCIT that M/s Ashok Kumar Fomra (HUF) is partner in assessee firm and it is not the case that the karta of the said ...namely Mr. Ashok Kumar Fomra is partner in assessee firm in his individual capacity . It was observed by learned PCIT that these payments made to aforesaid HUF by assessee firm cannot be allowed as...

...the manager has advanced a personal loan, that will be his personal income and interest paid in respect of the personal loan cannot be treated as interest paid to the HUF which is a partner through...partner in his individual capacity, Narayandas Hiralal is also a partner in his individual capacity and Vasantkumar Hiralal is a partner in his capacity as karta of HUF known as “Basantkumar Hiralal...of s. 40(b). Admittedly, Vasantkumar Hiralal is a partner in his capacity as karta of the HUF. The interest received by him is not in his capacity as karta of the HUF but in his capacity as an...

...husband is a partner as the karta of his HUF, cannot be clubbed by applying the provisions of Section 64 in the individual assessment of her husband in the status of an individual.... (1970) 2 SCC 355, (1970) 78 ITR 26. According to him, it was a case where the income of the minor children was sought to b...

...claimed that the interest cannot be included in the firm's income under section 40(b). The entire amount belonged to the HUF, who in law cannot be a partner in the firm...paid on these amounts would, therefore, pertain only to the HUF who in law and admittedly cannot be a partner in a firm.6. Secondly, from the nature of the account as obtaining...certainly, it cannot be said that the individual partner could lay claim to the interest or the amount standing in the name of the HUF. He cannot file a suit or take action for dissolution of the firm in...

...entity. Since a HUF cannot be a partner in a partner-ship, it cannot be said that the assessee, which is a HUF in this case, carried on the business of the above firm for the purpose of holding th...the business of the firm in which the HUF is said to be a partner, for the assessment years 1978-79 and 1979-80.2. The assessments for both the above assessment years were originally...assessee-HUF was a partner. In those assessments the property income was estimated at Rs. 1,200 on the ground that the property was given to the above firm for carrying on business. The assessee objected to...

...him, the deduction can be allowed only in respect of salary paid to a working partner who should always be representing himself and cannot represent an HUF-- A member of the HUF or Karta thereof could...application of mind. According to him, the deduction can be allowed only in respect of salary paid to a working partner who should always be representing himself and cannot represent an HUF. A member...the firm, which is inconsistent with the claim touted that he is only a working partner. The Commissioner was further of the view that in the eye of law also, a Karta of the HUF cannot, while representing the HUF, ...

...section 40(b) of the Act, only an individual can be a working partner and the Karta of the HUF cannot be a working partner. According to the Assessing Officer, the Kartas..., it was held that salary paid to the partner who was partner in his representative capacity as karta of HUF cannot be considered to be payment to HUF but to karta as an individual. The karta of ...represent their respective HUF and they are not partners in their individual capacity. Therefore, they cannot be said to be working partners and accordingly remuneration could not be paid to such partners...

...a firm and Assessing Officer in the assessment order disallowed the remuneration of Rs. 46,000 paid to HUF partner - Kundanlal Lalchand. This remuneration was claimed under section 40(b) of the I.T. Act an...confirming the disallowance of remuneration of Rs. 46,000 paid to partner Kundanlal Lalchand in the capacity of karta of Kundanlal Lalchand HUF.3. The facts in brief are that assessee is...remuneration paid to the Hindu undivided family, so also the Assessing Officer cannot regard to the remuneration paid to such partner, who is also a working partner, as remuneration paid to the Hindu undivided...

.... representative, the HUF as such cannot be a partner in the partnership firm. However one of the coparcener of the HUF can always be a partner representing the HUF. In this case, according to the.... representative, one of the coparcener was a partner representing HUF. Hence the interest paid cannot be disallowed under Section 40(b) of the Act. 5. On the contrary, Shri G.M. Das, the Ld....5,47,13,299/- while completing the assessment in respect of wind mill division. The Principal Commissioner has also found that interest paid to the partner to the extent of Rs.13 lakhs was allowed without any...

.... representative, the HUF as such cannot be a partner in the partnership firm. However one of the coparcener of the HUF can always be a partner representing the HUF. In this case, according to the.... representative, one of the coparcener was a partner representing HUF. Hence the interest paid cannot be disallowed under Section 40(b) of the Act. 5. On the contrary, Shri G.M. Das, the Ld....5,47,13,299/- while completing the assessment in respect of wind mill division. The Principal Commissioner has also found that interest paid to the partner to the extent of Rs.13 lakhs was allowed without any...

...that, in the Court's view, an undivided member of a HUF cannot be a partner along with the karta of the family, except where he furnishes capital in the form of property belonging to him in his...High Courts to uphold the validity of a partnership between the karta of a HUF and an individual member of the family where the latter is taken in as a working partner. In...property or the property which he obtained at a partition on division and thus can become a partner with the family represented by its karta, it is difficult to understand how such a partnership cannot...

...(1998) 229 ITR 458 (SC) that HUF cannot be a partner but only a karta representing the HUF can become a partner in a partnership firm...in their individual capacities even though each of them was a partner in the assessee-firm in his capacity as karta of his Hindu undivided family (hereinafter referred to as the HUF...has opined that in the circumstances which have been referred to hereinabove, the salary or consultation fees paid to the partner has to be disallowed under the provisions of section 40(b) of the Act...

...all purposes. In the context of the definition in the I.T Act, of the expressions “firm”, “partner” and “partnership” as having the same meaning as in the Partnership Act, an HUF cannot be a partner, as...partner in his individual capacity and has 40% share in the partnership profits. He happens to be the karta of an HUF. But the finding of the Tribunal is that he is a partner in Venkatesh Emporium only...Tribunal also held that the ITO was correct in adding back in the firm's assessments, the interest paid to the HUF of the partner, Venkatesan. They expressed the view that s. 40(b) enacts an absolute...

...short 'the Act') treating the assessee as firm. However, Principal Commissioner, in exercise of power under Section 263 of the Act, found that HUF or trust cannot be a partner in the partnership firm...Persons. 4. On the contrary, Ms. Vijayalakshmi, the Ld. Departmental Representative, submitted that a HUF or trust cannot become a partner in the partnership firm. In...this case, the HUF and trust were 2 taken as partner, therefore, it cannot be treated as a valid partnership firm...

...& Co. [1965] 55 ITR 660 that a HUF cannot be a partner in a firm since only individuals can form a partnership and that the...the gains of learning must be held to be separate property of the individual and cannot be treated as part of the income of the joint family. Once the joint family is recognised as the real partner of...part of the income of the firm, cannot be taken as part of the share of profit of a partner. In the circumstances, when section 40(b) refers to the salary paid to a partner...