COMMISSIONER OF INCOME-TAX, MADHYA PRADESH,NAGPUR vs SETH GOVINDRAM SUGAR MILLS LTD.

The Supreme Court held that a joint Hindu family cannot be a partner of a firm, but may enter into a partnership through its karta. The Court found that the partnership ended upon the death of one of the kartas, as per Section 31 and Section 42(c) of the Partnership Act, 1932, which applies only to partnerships with more than two partners. The Court ruled that the assessee was a firm for the assessment year 1950-51 from 13th December 1949, when one of the minor sons became a major, thus reversing the High Court's finding.