Law:

Section:

Section 5 of the estate duty act, 1953-Property passing on death-Partnership deed of firm, in which deceased was partner, provided that in event of death of 'a partner, such deceased partner would not be entitled to any goodwill of firm-whether in view of aforesaid provision in partnership deed, deceased's share in value of goodwill did not pass on his death-Held, on facts, yes Facts The deceased was a partner in a firm. The partnership was one at will. The partnership deed provided, inter alia (i) that in the event of death or retirement of a partner, such deceased or retiring partner would not be entitled to any goodwill of the firm ; and (ii) that if any partner died, the business would be continued by the remaining partners. On the deceased's death, the Assistant Controller included the value of his share in the goodwill of the firm in the estate passing on his death. On appeal, the Tribunal held that goodwill did pass on the death of the deceased. On reference: Held The assumption that there was an interest in the goodwill which the deceased possessed and could dispose of, was unjustified. In view of the provisions of the partnership deed, it could not be posited that at the time of his death, the deceased had a share in the goodwill or any other right which he could dispose of at that time. As such the value of the deceased''s share in the goodwill did not pass on his death. Therefore, the Tribunal was not justified. Case review Smt. Mrudula Nareshchandra v. CED [1975] 100 ITR 297 (Guj.) followed. IT Reference No. 153 of 1979. Cases referred to Hammon v. Dougals [1800] 5 Ves 539, David of Mathews, In re [1899] 1 Ch. 378, Smt. Mrudula Nareshchandra v. CED[1975] 100 ITR 297 (Guj.), CED v. Fakirchand Fatehchand Sachdev [1982] 134 ITR 268 (Bom.), CED v. Ibrahim Gulam Hussain Currimbhoy [1975] 100 ITR 320 (Mad.), State v. Prem Nath [1977] 106 ITR 446 (Punj. & Har.) (FB), Smt. Surumbayi Ammal v. CED [1976] 103 ITR 358 (Mad.), Attorney General v. Boden [1912] 1 KB 539, Perpetual Executors of Trustees Association of Australia Ltd. v. Commissioner of Taxes [1954] AC 114, CED v. Hussianbhai Mohamedbhai Badri [1973] 90 ITR 148 (SC), CED v. Aloke Mitra [1980] 126…

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