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Ritesh and Hitesh are childhood friends, Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer. (Delhi and AI 2018)

SOLUTION

No, they are not doing business in partnership because they are not involved in doing sale and purchase of land/plot on a regular basis. Mere co-ownership of a property does not amount to partnership.


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