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TMI Blog1990 (6) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... n 9 of the Estate Duty Act be applied ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in determining the deceased's share in the goodwill of the firm which passed on his death at 25 per cent. instead of 60 per cent. as determined by the Assistant Controller ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that only 25 per cent. of the amount of development rebate reserve standing in the firm's account as at the time of the deceased's death, should be taken as having passed on his death under section 5 of the Act and consequently reducing the amount under this head to be taken into account to Rs. 1,225 ? (4) Whether, on the facts and in the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his son within two years of his death without consideration and, therefore, the provisions of section 9 of the Estate Duty Act, 1953, were attracted, the Assistant Controller of Estate Duty included in the principal value of the estate 60 per cent. value of the goodwill and 60 per cent. of the development rebate reserve standing to the credit of that account in the balance-sheet of the firm. The Appellate Controller confirmed the order. The Tribunal, on second appeal, however, held that the transfer of the deceased's share in the goodwill to the extent of 35 per cent. was bona fide. According to the Tribunal, for application of section 9, two conditions were necessary, viz., (i) the transfer must have been made within two years of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on persons in succession, or otherwise, which shall not have been bona fide made two years or more before the death of the deceased shall be deemed to pass on the death : Provided that in the case of gifts made for public charitable purposes the period shall be six months. (2) The provisions of sub-section (1) shall not apply to (a) gifts made in consideration of marriage, subject to a maximum of rupees ten thousand in value ; (b) gifts which are proved to the satisfaction of the Controller to have been part of the normal expenditure of the deceased, subject to maximum of rupees ten thousand in value." It cannot be disputed that two conditions must be satisfied before section 9 can be applied. The two conditions are : (i) the transf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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