Question

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 ?

Answer 1

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.