HUF can be a partner in Firm?

HUF can't become a partner in a partnership firm. As individuals only can enter into the partnership.

The Hon’ble Supreme Court in Ram Laxman Sugar Mills vs. CIT [1967] 66 ITR 613 observed that a HUF is undoubtedly a Person with in the meaning of section 2(31), it is however not a juristic person for all purposes and cannot enter in to an agreement of partnership either with another HUF or Individual.

An HUF can become a partner in a firm through its Karta. Salary to HUF as a partner shall be taxable in the hands of Karta. Interest on capital shall be taxable in the hands of HUF.