1980 (5) TMI 89

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....hip firm on 11th Nov., 1977 and died on 30th Dec., 1977. The Asstt. CED held that she surrendered the share in the goodwill of the firm which share he valued at Rs. 13,700. 2. The accountable person went in appeal to Appellate Controller who upheld the order of the Asst. yr. CED but reduced the quantum to Rs. 11,700 in respect of the share of the deceased at 20 per cent of the goodwill of the f....

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....ion of any surrender of goodwill by the deceased lady in favour of the other partners. It was emphasised that the capital investment of the lady in the firm at the time of her retirement was only Rs. 5,145 and that she was not the working partner and was suffering from Cancer and died within the period of one month of her retirement from the partnership. Reliance was placed on Smt. Urmila vs. CED ....

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.... was whether it amounted to a gift by the father to the sons. High Court held that there was no evidence in support of the deemed gift. Our attention was also drawn to the office note to the assessment order of the firm Gagalbhai Hathibai for asst. yr. 1978-79 in which year the share of the deceased lady had been reduced from 20 per cent to 10 per cent and ITO observed in the office note that no g....

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....he facts of the case it is clear that the said lady had only 10 per cent share at the time of her retirement and she was not a working partner and her capital investment was only Rs. 5,145. Thus her share is goodwill of the firm, if any, would be only a nominal amount. Regarding the legal contentions, we are inclined to follow the decision in the Bombay High Court in 122 ITR 958 where under simila....