9911796707
TMI Blog1978 (8) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in the circumstances of the case, the admission of Ramesh, the son of the deceased, as a partner of the firm of M/s. New Modern Cloth Stores, resulted in a gift of any portion of the goodwill of the firm's business in his favour by the deceased ? " In this reference, we are concerned with the estate of one Rajaram Yeswant Sakhalkar, who died on 29th August, 1963. The deceased was a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partnership stating that the original partners had become old and were frequently not keeping good health and, therefore, could not attend to the business fully as was necessary. It was observed that instead of taking outsiders in the partnership it had been decided that the sons of the original partners who could work in the business should be taken as partners in the shop. It was made clear by c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other estate. The accountable person thereafter appealed to the Appellate CED, who, however, concurred in the view taken by the Assistant Controller. The accountable person carried the matter in further appeal to the Tribunal. It was contended before the Tribunal on his behalf that there was no gift from the deceased to his son and that Ramesh was admitted to the partnership in the interest of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew partners could not be held to be without any consideration flowing from the new partners. The conclusions reached by the Tribunal is in accord with the views expressed by the Division Benches of this court in Estate Duty Reference No. 1 of 1967 (CED v. Kantilal Nemchand) decided on 22nd July, 1977, by Kantawala C.J. and Tulzapurkar J. (since reported in [1978] 115 ITR 89), Gift-tax Reference No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, then the question referred to us is capable of having only one answer, which must be to the effect that there was no gift of the goodwill or of any share of goodwill to Ramesh ; and, therefore, the 1/6th share in the goodwill could not be added to the estate left by the deceased. In the result, the question referred to us is answered in the negative and in favour of the accountable person. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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