Law:

Section:

Section 9 of the Estate duty Act, 1953-Interest ceasing on death-Deceased was partner in a firm-Partnership deed provided for continuance of firm notwithstanding death on retirement of a partner but there was no condition that outgoing partner would not be entitled to share in goodwill-Whether deceased's share in goodwill of firm includible in principal value of estate passing on his death-Held, on facts, yes Facts S, who died on 12-9-1971, was a partner in a firm. There was a clause in the partnership deed which provided for the continuance, of the firm notwithstanding the death or retirement of a partner, but there was no condition that the outgoing partner would not be entitled to a share in the goodwill. The Assistant Controller included the value of S's share in the goodwill of the firm in the dutiable estate which devolved upon the accountable person (S's son). On appeal by the accountable person, the Appellate Controller confirmed the assessment with the quantum of the value of goodwill slightly reduced. On further appeal, the Tribunal upheld the Appellate Controller's order. On reference, it was contended by the accountable person that unless there was a general dissolution of the firm, there was no question of the value of the goodwill passing on to the accountable person on the death of the partner. Held In section 14 of the Partnership Act, goodwill is specifically mentioned as a property of the partnership firm. It is, therefore, clear that it constitutes an asset of the firm. In the instant case, there was no clause in the partnership deed to the effect that on the death of a partner his legal representative would not be entitled to any share in the goodwill and that the goodwill would enure to the benefit of the surviving partners who would continue as the partners of the firm. In the absence of such a clause, the accountable person being the legal representative of the deceased partner was entitled to the assets of the deceased partner in the firm, which included his share in the goodwill. The Tribunal was, therefore, justified in law in including the deceased's share in the goodwill of the firm in the principal value of the estate that passed on…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492