9911796707
TMI Blog1984 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... e profit. His share was fixed at 25% The shares of Hukumat Mal, Pratap Rai and Ramchand were brought down. Shri Hukumat Mal was given 25% while Shri Pratap Rai and Ramchand were allowed 25% and 10% respectively, Shri Aasumal continued to have 15% share as before. On these facts, the GTO proceeded to reach a finding that a part of the goodwill of the firm stood transferred to Brij Lal. Since the shares of Hukumat Mal, Pratap Rai and Ramchand had suffered reduction in their respective shares, he held that the goodwill, which stood transferred to Brij Lal, was transferred from the share of goodwill held by Hukumat Mal, Pratap Rai and Ramchand. When he called upon these persons, they lodged their protest against the GTO, taking such a view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aggrieved assessee restated their pleas and pointed out the support from judicial pronouncements, indicated above, but the AAC was not persuaded and, relying on the Kerala decision given in CGT vs. Ganapathy Moothan (1972) 84 ITR 758 (Ker), confirmed the finding of gift, made by the GTO in respect of all the three assessees. 3. The assessees have brought the matter before the Appellate Tribunal. The ld. counsel for the assessee restated the plea he had raised earlier before the lower authorities. According to him, there was no gift involved. Admission of Brij Lal. as a partner, was not without any consideration. He had made contribution to the capital and he brought experience of five years, which the firm needed. Besides, he became ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtnership Act lays down how the respective claims of the partners are to be satisfied from the proceeds of realisation following a dissolution. When any of these events takes place and there is an omission for the partner to settle their accounts respecting the assets and liabilities of the firm, it may be that the firm has more minus points and less plus points. In view of the recurring losses, there may be a real prospect of meeting the deficit than sharing the realised surplus. Therefore, we are not persuaded by the Revenue that when Brij Lal was admitted as a partner, he became entitled to claim a share in the existing goodwill which can be measured and for which three partners, whose shares were reduced on reconstitution, were to be ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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