CONTROLLER OF ESTATE DUTY Vs. NARANDAS JAMNADAS GOKANI

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following four questions of law to this court for opinion under section 64 (1) of the Estate Duty Act, 1957 :

(2.) THE real question is, however, only one. That question is :

(3.) THE deceased, it is common ground, started a business in manufacture and sale of camphor and agarbatti at Bombay as a proprietary concern. The business was converted into a partnership of the deceased and his son, the accountable person, in this case, on and from September 21, 1961. The deceased and his son thereupon had 60 per cent and 40 per cent. share respectively, both in the profits and the assets including goodwill. On March 3, 1969, the then partners took the deceased's wife also as a partner and admitted the deceased's minor son to the benefits of the partnership. This arrangement resulted in the reduction of the deceased's share in the goodwill of the firm from 60 per cent. to 25 per cent.