Goodwill for estate duty turns on reputation and attracting custom; business duration and profits are relevant, not conclusive, factors.

Goodwill for estate duty purposes depends on reputation, business connections and the capacity to attract custom and earn excess profits. Profits alone do not prove goodwill, but the length of time the business has been carried on and the consistency of its profitability are relevant evidentiary circumstances. They may indicate whether the business has the attractive force associated with goodwill and must be considered with all surrounding facts. The Tribunal erred in treating those factors as irrelevant. The matter required reconsideration on the full factual and legal material, and no final merits determination was made.

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Issues: Whether, in determining the existence of goodwill in a business for estate duty purposes, the length of time the business was carried on and the consistency of its profits are relevant circumstances.

Analysis: Goodwill is an intangible asset depending on reputation, connections, and the capacity of a business to attract custom and earn profits beyond normal levels. The mere fact that profits have been made does not by itself establish goodwill, but profitability and the duration of the business are not irrelevant. They are material circumstances which may indicate whether the business possesses that attractive force and reputation. The Tribunal had erred in treating these factors as wholly irrelevant and in not considering the question in the light of all relevant circumstances.

Conclusion: The length and profitability of the business are relevant factors in deciding whether goodwill exists, and the Tribunal's contrary approach was incorrect.

Final Conclusion: The matter required reconsideration by the Tribunal on the full factual and legal material, and the reference was not finally answered on the merits.

Ratio Decidendi: In determining goodwill, the duration and profitability of a business are relevant evidentiary circumstances, though not conclusive by themselves, and the issue must be decided on all surrounding facts.

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