TaxTMI 
TaxTMI 
1983 (2) TMI 146
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....esh as a partner and a partnership deed was made out on 1st November, 1973. This partnership deed shows that on the retirement of the two lady partners, Smt. Ratna had taken over the entire business of the firm alongwith all the assets and liabilities and goodwill. She was in need of a person who could help her in the day-to-day business and so she took her son as a partner. She had 60% share in the profits and losses of this partnership. 3. On 31st December, 1976 this partnership was dissolved and the late Smt. Ratna retired from the partnership. Shri Rajesh the continuing partner would take over the business including all the assets and liabilities and goodwill of the firm. The credit balance standing to the capital account would be a de....
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....no payment was received. He then submitted that the Tribunal decision relied on by the Appellate Controller did not apply to the facts of the case. In that case, the Tribunal found that the deceased partner was only owning 10% of the shares and therefore his contribution to the build up of goodwill and the share therein was negligible. In this case, however, goodwill at one time entirely belonged to the deceased and she had 60% share therein at the time of retirement. 7. Mr. Bhide for the accountable person, however, submitted that no partner has right in any of the assets of the partnership and so it could not be said that the goodwill belonged to her. He further submitted that it is not permissible to pick up one of the items of the asse....
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....e is consideration, we are unable to see anything in the dissolution deed to show that the deceased had given up her right in goodwill for consideration. Goodwill has been mentioned as being part of the business which will be completely owned by the remaining partner Rajesh. The dissolution deed does not say that she has received anything as consideration. Mr. Bhide made out a case saying that Shri Rajesh had indemnified the deceased in respect of the outstanding debts of the firm and this would be consideration for giving up goodwill. Emphasis was laid on cl. 7 of the dissolution deed. We are of opinion that this would not amount to consideration. As against the credit of Rs. 2.50 lacs for which she is claimed to be indemnified, the firm h....