Law:

Section:

Section 5 of the Estate Duty Act, 1953 - Levy of estate duty - Whether share of goodwill of deceased in firm passes on death of deceased under section 5 - Held, yes FACTS The Tribunal held that the share of goodwill of the deceased in the firm did not pass on the death of the deceased under section 5. On reference: HELD In view of decision of the Supreme Court in CED v. Mrudula Nareshchandra [1986] 160 ITR 342, it was to be held that the share of deceased in the goodwill of the firm passed on his death under section 5. Note - The decision was in favour of revenue. M.S.N. Murthy for the Controller. Y. Ratnakar for the Accountable person JUDGMENT Jeevan Reddy, J. -The only question referred in this case under section 64(1) of the Estate Duty Act, 1953 is: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the share of goodwill of the deceased in the firm of Messrs. Nathumal Brothers did not pass on the death of the deceased under section 5 of the Estate Duty Act?" On the question at issue was a conflict of opinion between the Gujrat High Court and the Madras High Court. The Gujrat High Court took the view in Mrudula Nareshchandra v. CED [1975] 100 ITR 297 , that the goodwill does not pass…

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