CONTROLLER OF ESTATE DUTY Vs. BABUBHAI HARJIVANDAS

JUDGEMENT

(1.) BOTH these references arise out of the same order of the Tribunal. At the instance of the Revenue, one question arising out of the decision of the Tribunal has been referred to us and that is Estate Duty Reference No. 1 of 1975. At the instance of the accountable person, question No. 1 has been referred to us and that is ED Ref. No. 2 of 1975. Since both these questions arise out of the same order of the Tribunal, we will dispose of both of them by this common judgment. Questions Nos. 1 and 2 referred to us are as under :

(2.) THE facts leading to these two references are as follows : One Harjivandas Hathibhai died on 25th May, 1967, leaving behind a will dt. 20th March, 1967. The deceased during his lifetime derived income from the firm of Harjivandas Hathibhai in which he was a partner having four annas or twenty five per cent share, interest, dividend, etc. At the time of his death his estate consisted of interest in the said partnership firm, shares, insurance, a bungalow at Alkapuri, Ashram Road, Ahmedabad, and one house and a shop in village Anjol. The deceased also had a share in the HUF house at village Anjol. The Asstt. CED, Ahmedabad, included the sum of Rs. 56,500 being the value of four annas share of the deceased in the goodwill of the firm of Harjivandas Hathibhai in the dutiable estate.

(3.) AS regards the question of goodwill, there is a peculiar clause in the partnership deed of Harjivandas Hathibhai and that clause is cl. 8 of the partnership deed. The translation of that clause, the original of which is in Gujarati, is in these terms :