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Issues Involved:
1. Inclusion of the deceased's half share in the coparcenary properties for estate duty purposes. 2. Determination of goodwill in the firm Ashwin Mehta and Co. and its inclusion in the deceased's estate. Issue-Wise Detailed Analysis: Issue 1: Inclusion of the Deceased's Half Share in the Coparcenary Properties The deceased and his brother were coparceners in a Hindu undivided family, each holding a half share in the coparcenary property. Upon the deceased's death, the accountable person argued that only 50% of the deceased's half share should be included in the estate, based on the Hindu Succession Act, 1956. The accountable person contended that if a partition had occurred immediately before the deceased's death, the widow would have received half of the deceased's half share. The Assistant Controller of Estate Duty rejected this claim, including the full value of the deceased's half share in the estate. The Tribunal upheld this decision, stating that the widow was not entitled to a share in the coparcenary interest that would have been allotted to her husband had a partition occurred. The court examined the provisions of section 6 and section 14 of the Hindu Succession Act, 1956, and concluded that while the deceased's interest in the coparcenary property devolved by succession and not by survivorship, this did not alter the rule of partition. The court clarified that a female member (the widow) does not have a right to claim partition or a share in the coparcenary property unless a partition occurs among male coparceners. The court emphasized that a coparcenary is a narrower body than a Hindu undivided family, consisting only of male members who acquire interest by birth. Females, although members of the Hindu undivided family, do not have an interest in the coparcenary property by birth. The court noted that a sole surviving coparcener becomes the absolute owner of the property, and no female member can claim a share solely against him. In this case, the deceased was deemed to have become the sole surviving coparcener upon severance from his brother, meaning the widow could not claim a share. Therefore, the entire interest of the deceased in the coparcenary property passed to his heirs, and the full value of his half share was correctly included in the estate. The court answered question No. 1 in the affirmative, in favor of the Revenue and against the assessee. Issue 2: Determination of Goodwill in the Firm Ashwin Mehta and Co. The issue was whether the firm Ashwin Mehta and Co., in which the deceased was a partner, had goodwill that passed upon his death. The accountable person argued that the firm's professional services were personal and dependent on individual skill, and thus, the firm could not have goodwill with saleable value. The court examined the concept of goodwill, citing Lord Macnaghten's definition in IRC v. Muller and Co's Margarine Ltd., and noted that goodwill is the benefit arising from the reputation and connection of a business, which can be marketable. The Supreme Court in Rustom Cavasjee Cooper v. Union of India described goodwill as an intangible asset reflecting the advantage of reputation and durable connections with customers. The court concluded that whether a professional firm has goodwill is a question of fact, dependent on whether the firm's reputation and connections are durable and associated with the firm's name rather than individual partners. The court cited cases where professional firms were found to have or not have goodwill based on specific circumstances. In this case, the Tribunal found that the firm Ashwin Mehta and Co. had considerable reputation and income, indicating the presence of goodwill. The court agreed with this finding, noting that the firm's name did not reflect the individual partners' names, supporting the existence of goodwill. The court answered question No. 2 in the affirmative, in favor of the Revenue and against the assessee. Conclusion: Both questions were answered in favor of the Revenue, affirming the inclusion of the deceased's full half share in the coparcenary properties and recognizing the existence of goodwill in the firm Ashwin Mehta and Co. as part of the deceased's estate. There was no order as to costs.
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