|Originally posted by : Divyansh
||can a partnership firm become a partner in any other partnership firm?
-> Under section 4 of the Indian Partnership Act, 1932, one of the basic elements required for a partnership is that there must be an agreement entered into by two or more persons. In this context, the English as well as the Indian law clearly provide that a firm is not a legal entity. Further, the word ‘persons’, as contemplated in section 4 of the Indian Partnership Act, 1932 means only natural or artificial persons, i.e. legal persons.
-> Legally speaking, a firm of partnership is not a legal person and therefore a firm cannot become a partner of another firm. A firm is not a person in the eyes of law and as such, it is not entitled to enter into partnership with any firm or individuals or a Hindu undivided family.
– Dulichand Laxmi Narain vs. CIT  29 ITR 535 (SC).