1992 (9) TMI 56

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irmative, whether the amount of Rs. 30,600 can be added on account of the share of the deceased in the goodwill to the estate of the deceased ? " Daulal Kanaiyalal died on August 8, 1975. Apart from being a member of a Hindu undivided family and the Hindu undivided family being partner in two firms, he was a partner in his individual capacity in the firm of Messrs. Ashokkumar Mukeshkumar. The accountable person had raised various contentions before the Assistant Controller and one of them was that, in view of the clause in the partnership deed of Messrs. Ashokkumar Mukeshkumar to the effect that, in the case of goodwill, if attached to the firm at any time, the same shall be the property of the firm and no party to the deed shall have an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e, they deserve to be referred to this court. As regards question No. 2, it may be stated that the Tribunal had thought it unnecessary to go into the question raised on behalf of the accountable person that the share of the deceased was much less than Rs. 30,600. It is therefore, difficult to appreciate how question No. 2 can be said to have arisen from the order of the Tribunal when the Tribunal itself had not considered that aspect. As stated earlier, the Tribunal interpreted the said clause in the partnership deed to mean that no partner had any right, title or lien over the goodwill either on his retirement or even at the time of his death, and, applying the decision of this court in Mrudula Nareshchandra v. CED [1975] 100 ITR 297....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e one who, by virtue of the partnership agreement, would be entitled to the value of that asset. In view of what has been held by the Supreme Court in Mrudula Nareshchandra's case [1986] 160 ITR 342, the finding of the Tribunal that the deceased had no share in the goodwill of Messrs. Ashokkumar Mukeshkumar will have to be regarded as erroneous. Moreover, the Tribunal, while holding that, in view of the said clause in the partnership deed, no partner had any right, title or lien over the goodwill either on his retirement or even at the time of his death overlooked the aspect that the said clause did not debar the partner from receiving a share in the goodwill in case of dissolution of the firm. If the firm had been dissolved before the deat....