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TMI Blog1993 (6) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the firm by excluding the minors and consequently are not liable to gift-tax?" Messrs. Sarda Trading Corporation is a firm constituted as per partnership deed dated August 18, 1971, with Ramgopal Saharia, Smt. Pramila Saharia and Smt. Abha Saharia as partners. Subsequently, the respondents herein, minor members of the family, were admitted to the benefits of the partnership. The partnership was reconstituted on July 31, 1973, dropping the minors from the benefits of the partnership. The Gift tax Officer issued notice under section 13(2) of the Act. No return was filed. Notice under section 15(4) of the Act was issued and the authorised representatives of the respondents were heard. By separate orders, the Gift-tax Officer estimated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsent of all the partners. Admission of a minor to the benefits of partnership is dealt with by section 30 of the Partnership Act. Such minor has a right to such share of the property and of the profits of the firm as may be agreed upon. He may have access to, and inspect and copy any of the accounts of the firm. Such minor's share is liable for the acts of the firm but the minor is not personally liable for any such act. He may not sue the partners for an account or payment of his share of the property or profits of the firm, save when severing his connection with the firm, and, in such case, the amount of his share shall be determined by a valuation made, as far as possible, in accordance with the rules contained in section 48. In such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the benefits, arising from connection and reputation, as every positive advantage as distinguished from negative advantage that has been acquired by the firm in carrying on its business. It represents the public approbation which has been won by the business. Undoubtedly, goodwill forms part of the assets of the firm or partnership. This is clear from the provisions of section 55 of the Partnership Act, which states that, in settling the accounts of a firm after dissolution, the goodwill shall, subject to the contract between the partners, be included in the assets, and it may be sold either separately or along with the other property of the firm. Share in goodwill is capable of being inherited-See Khushal Khemgar Shah v. (Mrs.) Khorshed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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