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TMI Blog1973 (9) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... spet, as belonging to the deceased is valid in law ? (2) Whether, on the facts and circumstances of the case, the inclusion of Rs. 71,900 being the gifts (inclusive of interest) made by the deceased to his wife and five sons, by applying the provisions of section 10 of the Estate Duty Act, 1953, is valid in law ? " (3) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in not entertaining the additional ground raised by the assessee?" The deceased, Suleman Sait, was a partner of a firm by name, M/s. Ismail Haji Suleman Sait, Hospet, carrying on business in foodgrains, oil, etc., in Hogpet town. He died on firstly December, 1966. The Assistant Controller of Estate Duty determined the net princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit in the firm. The amounts continued to remain with the firm and were utilised in the business and the deceased continued to be a partner of the firm till his death on October 17, 1960. The question was whether the sum of Rs. 1,29,924 could be included in the property passing on his death under section 10 of the Estate Duty Act, 1953. The Appellate Tribunal, applying Munro's case , held that the subject-matter of the gifts did not come within the purview of section 10 and was not subject to estate duty. On a reference, the High Court held that the sum of Rs. 1,29,924 was not liable to estate duty as property deemed to pass on the death of the deceased under section 10. In the said case, the amounts transferred by the deceased to his daug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hardly any possibility of there being a goodwill attached to such business." But the authoritative view on the nature and quality of goodwill is contained in the judgment of the Supreme Court in Rustom Cawasjee Cooper v.Union of India . This is what is stated by Shah J.as he then was : "Goodwill of a business is an intangible asset. It is the whole advantage of the reputation and connections formed with the customers together with the circumstances making the connection durable. It is that component of the total value of the undertaking which is attributable to the ability of the concern to earn profits over a course of years or in excess of normal amounts because of its reputation, location and other features. Goodwill of the business is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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