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Valuation of deceased partner's share in a partnership firm for estate duty assessment. Analysis: The judgment addresses the issue of valuing the deceased partner's share in a partnership firm for estate duty assessment. The case involved two partners, each with a specific share in a firm. The Assistant Controller included the deceased partners' shares in the bad debts reserve account and goodwill in their respective estates for valuation purposes. The appellate authority noted the proper method for valuation is determining the deceased partner's share if the firm had been dissolved on the date of death. However, the appellate authority did not remand the matter for this exercise, as the result was expected to be the same. The Appellate Tribunal rejected the argument that the deceased partner's share could not pass on death due to the partnership deed clause preventing dissolution on a partner's death. The Tribunal relied on a Full Bench decision and upheld the inclusion of the deceased partner's share in the estate valuation. The judgment highlights that the correct method of valuation was not followed by the Assistant Controller, but the Appellate Controller's reasoning was not challenged in the second appeal. The Appellate Tribunal only considered the legal argument that no share of the bad debt reserve could be included in the estate valuation due to no payment or allocation to the deceased partner. The Tribunal rejected this argument, emphasizing the partnership deed's provision for continuing the partnership after a partner's death. The judgment notes that the argument for remitting the matter for correct valuation was not raised before the Tribunal and does not align with the question referred for consideration. Ultimately, the court upheld the Tribunal's decision, ruling in favor of the Revenue and against the accountable persons, based on the circumstances and arguments presented during the proceedings.
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