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TMI Blog1987 (7) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... -1975. The firm was re-constituted by another Deed dated 25-11-1975 with seven partners. Under the original Deed of Partnership, the Dame of the firm " A Rafeeq Ahmed Co. ", its goodwill and the trade marks exclusively belonged to the deceased partner, A. Rafeeq Ahmed. Therefore, when the successor firm took over the business it was agreed by that firm with the legal representatives of A. Rafeeq Ahmed that the firm will be permitted to use the name of the firm, its goodwill and trade marks upon payment of 10 per cent of the profits of the firm subject to a minimum of Rs. 1,00,000 per annum to the legal representatives. This condition was also recorded in clauses 15 to 17 of the Deed dated 25-11-1975. That Deed also provided in clause 10 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the share of the goodwill which was the asset yielding income and whose value could be properly evaluated by capitalising the income by 10 times as was done by the WTO. It was submitted that in the circumstances the valuation made and the inclusion of the asset by the WTO should be restored. 4. On the other hand, it was contended on behalf of the assessees that they could not exploit their share in the goodwill without any business of their own or anyone willing to use the trade mark in a business and since the firm which was actually using the trade mark had neither undertaken to keep the agreement alive for any specified number of years nor was it in a position even to guarantee the use of the trade marks for any length of time, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment for 25 years of salt pans with a stipulation that the lease could be terminated at any moment by the Government and the Supreme Court held that the lease was precarious inasmuch as the leasehold interest was not available to the assessee for a period exceeding six years from the valuation date. On the same analogy in the present case also the agreement of the assessees with the firm for the exploitation of the goodwill is precarious because not only is there no stipulated period of tenure for the agreement to use the goodwill but also because the firm itself is at will and once the firm is dissolved the agreement would fall to the ground. The question will then arise whether the reversionary right of the assessees to exploit the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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