CONTROLLER OF ESTATE DUTY Vs. VASANTRAI B MEHTA

JUDGEMENT

(1.) THIS is a reference under S. 649(1) of the ED Act, 1953, (hereinafter referred to as "the said Act"), made at the instance of the CED, Bombay City III. The question referred to us for our determination in this reference is as follows :

(2.) THE facts giving rise to this reference are as follows: One Bhavanidas Harjivandas Mehta, the deceased, expired on 17th Oct., 1964. The deceased was a partner in the firm of M/s Bhavanidas Gangadas & Co. with 50per cent share therein along with two other persons, being his two sons, Vasantrai B. Mehta, the accountable person herein, and Jekisandas B. Mehta. The said two sons had a 25per cent share each in the said partnership.

(3.) THE net profits of the partnership business shall be divided as under : The losses, if any, of the partnership shall be divided among the partners hereto as under : Provided that the said minor Rameshchandra on his attaining majority and agreeing to remain as partner in the firm shall also share the loss in his profit sharing proportion, i.e., at 15per cent, and in that event the share of loss being borne by the party of the first part shall be reduced proportionately :