1985 (10) TMI 40

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....ring the accounting year 1973-74, an amount of Rs. 32,500 was claimed as " business expenses " having been paid to the heirs of the deceased partner Mongi Lal, who died on August 18, 1972. In the return, the payment was said to have been made on account of goodwill of the firm. The assessing authority, taking the amount as having been paid for purchase of the goodwill, disallowed the same as busin....

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....ould be as to " whether the said amount was paid for the purchase of the goodwill or for its use ". Obviously the answer has to be that it was only the exclusive use of the goodwill which was purchased. As the firm had never been dissolved and was continuing, the remaining partners bad the right to use the goodwill. Similar right the heirs of the deceased partner have. So, by making the said payme....