is partnershiip firm is a person as per defination

no its not legal enityt it is just a representative of partner

Firm is a person and pays tax on its income and thats why the share in profit  to partners from a partnership firm is tax free

 

But for wealth tax firm is not a person and the interest in firm is taxable in the hands of partner

yes............

In Income Tax Act, it is considered as a Person u/s 2(31) and it is also assessed as such.

 

For the purpose of other acts; it is not a separate legal entity hence all the partners are personally liable to the acts of the partnership. 

 

Even in the Income-Tax Act, the if the firm does not pay the tax liabilities then all the partners are jointly and severally liable to pay the tax liabilities.

 

From practical angles; a partnership registered with ROF  can sue other parties  in its own name. Here also it does not mean that it is a separate legal entity.  The provisions have been made in the enactment to facilitate the legal action and rights  rather than approving it as a separate legal entity. 

 

An HUF cannot enter into partnership (even represented by Karta) as is now well settled (supra by one learned member). 

 

So if query is restricted to Firm for Income-Tax purpose; it is a person because it is an assessable distinctly from its partners.

 

 

For I.Tax purpose - Firms are considered under definition of Person and assessed as such. For Wealth Tax purpose - Firm is not assessable seperately. Instead the value of interest of partners in firm are included in the wealth of the partner's in their individual capacity. Exemption u/s 5 applies to partners. For any other purpose - Firms are not treated as seperate legal entity. It is represented by their partners and partners are personally jointly and severally have unlimited liability. Hope this helps you.