Referable question of law on inclusion of goodwill in estate duty required Tribunal reference to the High Court.

A referable question of law arose under section 64(1) of the Estate Duty Act, 1953 on whether the deceased's share in firm goodwill was includible in the estate. The High Court noted that the Supreme Court had already clarified the law on inclusion of goodwill and had approved authority supporting the Revenue, so the issue was not merely factual or academic. On that basis, the Tribunal was required to state the case for the High Court's consideration. The refusal to make a reference was set aside and the Revenue's reference request was accepted.

---

---

Issues: Whether a referable question of law arose under section 64(1) of the Estate Duty Act, 1953 so as to require the Tribunal to state the case and refer the question to the High Court.

Analysis: The Tribunal had rejected the reference application after holding that the addition made towards the deceased's share in the goodwill of the firm was unsustainable. The High Court noted that the Supreme Court had authoritatively clarified the law on inclusion of goodwill in the estate and had approved the line of authority supporting the Revenue. In that background, the proposed question was not merely academic or factual but raised a legal issue requiring examination by the High Court.

Conclusion: A question of law did arise and the Tribunal was required to make a reference. The refusal to state the case was set aside and the Revenue's request for reference was accepted.

---