Firm definition
This query is : Resolved
09 October 2011
Your attention is invited to Section 2(32) of the IT Act 1961 which is like this............"2(23) "firm", "partner" and "partnership" have the meanings respectively assigned to them in the Indian
Partnership Act, 1932 (9 of 1932) but the expression "partner" shall also include any person who, being a
minor, has been admitted to the benefits of partnership;
Thus to find out the meaning of the expression "firm" you will have to see the Partnership Act 1932.There in Section 4 you will find the definition like this ............"Section4
DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".
"Partnership" is the relation between persons who have agreed to share the profits of
a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually,
"partners" and collectively "a firm", and the name under which their business is
carried on is called the "firm-name".
Thus under the partnership act the firm is not a separate entity and has no existence as such. It is only a collective name for the partners. But under the IT act the Firm is a separate taxable entity and is specifically included in the definition of "person" as per section 2(31).
Hope the above would to certain extent satisfy your requirements, I believe.
siva208@yahoo.com
Partnership Act, 1932 (9 of 1932) but the expression "partner" shall also include any person who, being a
minor, has been admitted to the benefits of partnership;
Thus to find out the meaning of the expression "firm" you will have to see the Partnership Act 1932.There in Section 4 you will find the definition like this ............"Section4
DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".
"Partnership" is the relation between persons who have agreed to share the profits of
a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually,
"partners" and collectively "a firm", and the name under which their business is
carried on is called the "firm-name".
Thus under the partnership act the firm is not a separate entity and has no existence as such. It is only a collective name for the partners. But under the IT act the Firm is a separate taxable entity and is specifically included in the definition of "person" as per section 2(31).
Hope the above would to certain extent satisfy your requirements, I believe.
siva208@yahoo.com
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