CONTROLLER OF ESTATE DUTY Vs. JAGDISH PRASAD

JUDGEMENT

(1.) AT the instance of the Controller of Estate Duty, the Income-tax Appellate Tribunal, Allahabad, has in connection with the estate duty assessment of the estate of Sri Bhagwan Das, stated the case and has referred the following question for the opinion of this court :

(2.) THE deceased, Bhagwan Das, was a partner in three different firms, namely, Jagdish Prasad Sitaram, Dhrangadhra, Mosaram Bhagwan Das and Jagdish Prasad Sitaram, Sitapur. THE Assistant Controller held that the share of the deceased in the goodwill of these firms was liable to be included in his estate. THE goodwill of M/s. Jagdish Prasad, Dhrangadhra, was found to be nil. THE share of the deceased in the goodwill of M/s. Mosaram Bhagwan Das was computed at Rs. 24,423 and that in M/s. Jagdish Prasad Sitaram, Sitapur, at Rs. 4,962. THEse amounts were, accordingly, included in the estate of the deceased.

(3.) GOODWILL is the benefit and advantage of the good name, reputation and connection of business. In our opinion, the Tribunal was right in holding that in a case where the business was being done under a licence or under an agency agreement which was not transferable and which was for a short period and which could be cancelled at the sweet will of the grantor, there was no such benefit or advantage which a person carrying on that business derived because of the good name, reputation or connection in the business and, as such, the two firms did not have any goodwill.