Same And Similar - Definition - Law Dictionary Home Dictionary Definition same-and-similar

Definition :

Same and similar, although the word same is frequently used in the sense of similar, the word similar never means 'same', AIR 1956 Punj 49 (55). (Partnership Act, 1932, s. 54)

The two words 'same' and 'similar' connote different concepts and therefore the carrying of a similar business will not meet the requirements of the section. If one business cannot be conveniently carried on after the closure of the other, there would be a strong indication that the two businesses constituted the 'same business' but, no decisive inference could be drawn from the fact that after the closure of one business another may conveniently be carried on. The real test would be: was there any inter-connection, any interlacing, any inter-dependence, any unity at all embracing those two businesses. Such inter-connection, inter-relation, inter-dependence and unity exist when there is common management, common business organisation, common administration, common fund and a common place of business, B.R. Limited v. V.P. Gupta, Commissioner of Income Tax, AIR 1978 SC 1320 (1326): (1978) 3 SCC 70: (1978) 3 SCR 877.