Can a partnership firm become partner of another partnership

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illyas sait

4 Points Joined December 2015

Can a partnership firm with 6 (a,b,c,d,e,f) partners let's say M/s. SUPER SIX become a partner with another partnership firm called M/s. SYNDICATE already having 4 (g,h,i,j) partners. If yes than plz tell me Hw would the partners names appear in the partnership deed of M/s. SYNDICATE G 20% H 20% I 20% J and 20% SUPER SIX represented by A - 20% if this is okay than does the profit after tax percentage of M/s. SUPER SIX arising from M/s. SYNDICATE can it straight away go into M/s. SUPER SIX and be divided and passed on amongst all the 6 partner's capital accounts. In M/s. Super Six Kindly let me know friends

Replies (3)

DISHA SHAH

professional

1618 Points Joined September 2008

no partnership firm cant become partner in another firm , because its not juristic person

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Agree with Disha
Kindly refer the Dulichand Laxminarayan case law

In Dulichand Laxminarayan v. CIT(2)[1956]29 ITR 535, The Supreme Court has also held that “partnership” being the relation between persons, who have agreed to share th e profits of a business carried on by all or any of them acting for all, and “persons” who enter into the partnership being called individually “partners” or collectively “a firm” the word “person” contemplates only natural or artificial, i.e., legal persons, and neither a firm nor a Hindu undivided family can be that person