TaxTMI 
TaxTMI 
2001 (2) TMI 125
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....are in the profit of the partnership firm, which carried on business of commission agency in shop No. B-176, New Subzi Mandi, Delhi. The Assistant Controller of Estate Duty (hereinafter referred to as "the assessing authority"), while computing the estate duty payable, determined the value of the goodwill of the partnership at Rs. 3,90,579 and held that the goodwill exclusively belonged to the deceased and therefore passed on his death to his legal representatives. On appeal, however, the Appellate Controller determined the value of the goodwill at Rs. 1,30,193 and upheld the addition to that extent. The matter was carried in appeal by the accountable person before the Tribunal. It was contended that the addition on account of goodwill should be in proportion to the profit-sharing ratio of the deceased. The Tribunal accepted the contention. On being moved, the question as set out above, has been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance on behalf of the accountable person. Learned counsel with reference to the decision of the apex court in CED v. Mrudula Nareshchandra [1986] 160 ITR 342, submitted that the en....
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....liabilities.--- (1) Where any property passes on the death of the deceased--- (a) every legal representative to whom such property so passes for any beneficial interest in possession or in whom any interest in the property so passing is at any time vested, (b) every trustee, guardian, committee or other person in whom any interest in the property so passing or the management thereof is at any time vested, and (c) every person in whom any interest in the property so passing is vested in possession by alienation or other derivative title, shall be accountable for the whole of the estate duty on the property passing on the death but shall not be liable for any duty in excess of the assets of the deceased which he actually received or which, but for his own neglect or default, he might have received : Provided that nothing in this section shall render a person accountable for duty who acts merely as agent or bailiff for another person in the management of property. (2) Notwithstanding anything contained in sub-section (1), where an heir-at-law proves to the satisfaction of the Controller that some other person is in adverse possession of any assets of the deceased, th....
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....d in the certificate. (3) After regular assessment has been made under section 58 any amount paid towards the provisional assessment made under sub-section (1) shall be deemed to have been paid towards the regular assessment. (4) No appeal shall lie against a provisional assessment made under sub-section (1), but nothing done or suffered by reason or in consequence of any such provisional assessment shall prejudice the determination on the merits of any issue which may arise in the course of the regular assessment under section 58." It is clear from the resume of the provisions of the Act, that under sub-section (3) of section 53 every person accountable for estate duty under sub-section (1) of that section is liable to deliver to the Controller within six months of the death of the deceased an account of all properties in respect of which estate duty is payable on the death of the deceased. There may be and in many cases there would be more than one person accountable for estate duty under sub-section (1) of section 53. and the obligation to deliver an account of all the properties in respect of which estate duty is payable would be on each of the persons so accountable. ....
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....d on account of the words "the property passing on the death" appearing in the expression "the whole of the estate duty on the property passing on the death" in sub-section (1) of section 53. These words, according to their plain grammatical construction, would seem to indicate that every accountable person would be accountable for the estate duty on the entire property passing or deemed to pass on the death of the deceased. But it was argued on behalf of the appellant that having regard to the words "where any property passes" appearing in the opening part of the sub-section coupled with the words "such property so passes" and "the property so passing" appearing in the respective sub clauses, the word "the" appearing before the words "property passing on the death" must again refer to the same property which is referred to in the respective sub-clauses (a), (b) and (c) as the case may be. This argument, plausible though it may seem, is not well founded for it ignores one very important circumstance, namely, that each of the persons mentioned in sub-clauses (a), (b) and (c) is rendered accountable for the whole of the estate duty not merely "on the property so passing" but on "the ....