Goodwill passing on death under estate duty law was held includible in the principal value of the estate.

Goodwill of a firm was treated as property falling within the Estate Duty Act provisions governing property passing or deemed to pass on death, because the issue was governed by the Supreme Court decision relied on by both sides. On that basis, the value of the goodwill was held includible in the principal value of the estate. The question was answered in the affirmative and against the assessee.

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Issues: Whether any part of the value of the goodwill of the firm passed on the death of the deceased under section 5 of the Estate Duty Act, 1953, or was deemed to pass on his death under section 7 of that Act so as to be includible in the principal value of the estate.

Analysis: The issue was treated as governed by the Supreme Court decision relied upon by both sides. On that basis, the value of the goodwill in question was held to fall within the statutory provisions governing property passing or deemed to pass on death.

Conclusion: The question was answered in the affirmative and against the assessee, with the consequence that the value of the goodwill was includible in the estate.

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