1978 (8) TMI 49

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....us by the Tribunal under s. 64(1) of the E.D. Act : " Whether, on the facts and in the circumstances of the case, the admission of Ramesh, the son of the deceased, as a partner of the firm of M/s. New Modern Cloth Stores, resulted in a gift of any portion of the goodwill of the firm's business in his favour by the deceased ? " In this reference, we are concerned with the estate of one Rajara....

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....tners was fixed at one-sixth. There was a recital in the preamble of the partnership stating that the original partners had become old and were frequently not keeping good health and, therefore, could not attend to the business fully as was necessary. It was observed that instead of taking outsiders in the partnership it had been decided that the sons of the original partners who could work in the....

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....ed to his son, Ramesh. The same was valued at Rs. 78,140 and added to the other estate. The accountable person thereafter appealed to the Appellate CED, who, however, concurred in the view taken by the Assistant Controller. The accountable person carried the matter in further appeal to the Tribunal. It was contended before the Tribunal on his behalf that there was no gift from the deceased to his ....

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....n the third of the grounds, which was that admission by the firm of the new partners could not be held to be without any consideration flowing from the new partners. The conclusions reached by the Tribunal is in accord with the views expressed by the Division Benches of this court in Estate Duty Reference No. 1 of 1967 (CED v. Kantilal Nemchand) decided on 22nd July, 1977, by Kantawala C.J. and Tu....