Q: Delineate the case of K.D. Kamath & Co. v. CIT, (1971) 2 SCC 873 ?

Ans: In K.D. Kamath & Co. v. CIT, (1971) 2 SCC 873 Supreme Court held that two conditions are essential to constitute partnership; firstly, there must be an agreement to share the profit or losses of the business and secondly, the business must be carried on by all the partners or any one of them acting for all. The principle of agency is implicit in second requirement.

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