The Assistant Controller of Estate Duty while valuing the estate of the deceased, came to the companyclusion that the share of the deceased in the goodwill of the firm in which he was a partner was liable to be included in the principal value of his property.
This inclusion was resisted by the accountable person on the ground that the question of adding the value of the share of the deceased in the goodwill of the firm did number arise in view of clause 10 of the partnership deed.
She raised before the Tribunal two principal companytentions, namely, 1 that the deceased had numberinterest in the assets of the firm and hence his share in the goodwill did number pass at all, and 2 as, according to the partnership agreement, the partnership was to companytinue on the death of any of the partners and as it was further stipulated that the deceased would have numberinterest in the goodwill of the firm on his death, his share in the goodwill did number pass and as such was number liable to the charge of estate duty.
Clause 10 was as follows The firm shall number stand dissolved on death of any of the partners and the partner dying shall have numberright whatever in the goodwill of the firm.
From the Judgment and Order dated 20th June, 1973 of the Gujarat High Court in Estate Duty Ref.
The accountable person companytended on the basis of this clause that on the death of the deceased, his heirs had numberright in the goodwill of the firm, and as such the value of the said goodwill did number pass under the provisions of the Act and was, therefore, number liable to any estate duty.
3 of 1970.
The Tribunal rejected both these companytentions.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On the death of the deceased, the accountable person filed necessary return under the Act.
1349 NT of 1974.
C. Manchanda, K.P. Bhatnagar and Miss A. Subhashini for the Appellant.
He was a partner in the firm of Messrs G. Bhagwatiprasad Co. having 28 share in the partnership.
The partnership was by the document of partnership which is dated 6th June, 1957.
T. Desai and S.C. Patel for the Respondent.
One Nareshchandra Kantilal died on 13th September, 1962.
The Judgment of the Court was delivered by SABYASACHI MUKHARJI, J. This is an appeal by certificate granted by the High Court of Gujarat by its order dated 2nd May, 1974 from the judgment and order dated 28th June, 1973 in Estate Duty Reference No.
The accountable person thereafter went up in appeal before the Appellate Tribunal.
3 of 1970 under section 65 1 of the Estate Duty Act, 1953 hereinafter called the Act .
The accountable person, being aggrieved, preferred an appeal before the Appellate Controller of Estate Duty, Bombay.
