TMI Blog2001 (2) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the profit-sharing ratio, although the goodwill of the business constituted the sole and exclusive property of the deceased in accordance with clause 13 of the partnership deed ?" The factual position essentially is as follows : Shri Kishan Lal Bhandari (hereinafter referred to as "the deceased"), was a partner in the firm Sita Ram Khairati Lal. He died on September 17, 1978. He had a 44 per cent. share in the profit of the partnership firm, which carried on business of commission agency in shop No. B-176, New Subzi Mandi, Delhi. The Assistant Controller of Estate Duty (hereinafter referred to as "the assessing authority"), while computing the estate duty payable, determined the value of the goodwill of the partnership at Rs. 3,90,579 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever has the benefit of that firm, has the benefit of the value of that goodwill. In CED v. Mrudula Nareshchandra [1986] 160 ITR 342 (SC), it was observed that as a result of the death of the dying partner, there is cessor of interest as well as accrual or arising of benefit of the said cessor. It was noted that during the subsistence of the partnership, no partner can claim any specific share in any particular item of the partnership assets. The partner's interest in a running partnership is not specific and does not confine to any specific item of the partnership property. But that does not mean that the partner has no interest in any individual asset of the firm. His interest obviously extends to each and every item of the firm's assets. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possession by alienation or other derivative title, shall be accountable for the whole of the estate duty on the property passing on the death but shall not be liable for any duty in excess of the assets of the deceased which he actually received or which, but for his own neglect or default, he might have received : Provided that nothing in this section shall render a person accountable for duty who acts merely as agent or bailiff for another person in the management of property. (2) Notwithstanding anything contained in sub-section (1), where an heir-at-law proves to the satisfaction of the Controller that some other person is in adverse possession of any assets of the deceased, the heir-at-law shall not be accountable for the portio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional assessment in advance of regular assessment.--- (1) Estate duty shall be due from the date of the death of the deceased, and the Controller may, at any time after the receipt of account delivered under section 53 or section 56, proceed to make in a summary manner a provisional assessment of the estate duty payable by the person delivering the account on the basis of the account so delivered. (2) Upon a provisional assessment being made under sub-section (1), the person so assessed shall pay to the Controller, or furnish security to the satisfaction of the Controller for the payment of, the estate duty, if any, payable on the provisional assessment, and the Controller shall thereupon grant him a certificate that such duty has been or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) to make a provisional assessment of the estate duty payable by such accountable person on the basis of the account so delivered and when such provisional assessment is made, the accountable person "so assessed" would be liable under sub-section (2) of section 57 to pay to the Controller, the estate duty, if any, payable on such provisional assessment. The amount of estate duty provisionally assessed would be payable only by the accountable person on whom the provisional assessment is made. The Controller would, there after, be entitled under section 56 to make an order of regular assessment assessing the principal value of the estate of the deceased and determining the amount payable as estate duty. When an order of assessment is mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing in the expression "the whole of the estate duty on the property passing on the death" in sub-section (1) of section 53. These words, according to their plain grammatical construction, would seem to indicate that every accountable person would be accountable for the estate duty on the entire property passing or deemed to pass on the death of the deceased. But it was argued on behalf of the appellant that having regard to the words "where any property passes" appearing in the opening part of the sub-section coupled with the words "such property so passes" and "the property so passing" appearing in the respective sub clauses, the word "the" appearing before the words "property passing on the death" must again refer to the same propert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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