TMI Blog1992 (7) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... eir smaller Hindu undivided families, namely, Jagjit Singh Hindu undivided family and Gurcharan Singh Hindu undivided family, under the name and style of Messrs. Golden Chemical Works. Gopal Singh died on September 4, 1970. By virtue of a registered will dated March 29, 1968, his share in the goodwill of the said firm came to Jagjit Singh Hindu undivided family and Gurcharan Singh Hindu undivided family who were the surviving partners in the firm. A new firm was constituted with Smt. Kulwant Kaur (individual) joining Jagjit Singh Hindu undivided family and Gurcharan Singh Hindu undivided family under a new partnership deed dated September 5, 1970, annexure A-II. This was followed by a partial partition in the two Hindu undivided families of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will continued to be an asset of the going concern and the same never vested in the two Hindu undivided families of Jagjit Singh and Gurcharan Singh. It was further contended before the Tribunal that the goodwill could not be separated from a going concern. Further, it was urged that the two Hindu undivided families of Jagjit Singh and Gurcharan Singh not being partners, they could not claim ownership of the goodwill. Lastly, it was argued that the firm having not been dissolved, none of the partners could predicate his share and, therefore, there was no question of payment of rent on account of use of the goodwill. These contentions prevailed with the Tribunal, with the result that the Revenue's appeal was allowed, as already stated. Hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel. We find ourselves in agreement with the contention of Mr. Mahajan. There can be no doubt that goodwill of the business is as much property of the firm as the property originally brought into the stock of the firm or acquired by purchase or otherwise by the firm. Section 14 of the Indian Partnership Act, 1932, lays down as under "14. The property of the firm. Subject to contract between the partners, the property of the firm includes all property and rights and interests in property originally brought into the stock of the firm, or acquired by purchase or otherwise, by or for the firm, or, for the purposes and in the course of the business of the firm, and includes also the goodwill of the business. Unless the contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Hindu undivided family partitioned its business on April 12, 1956, and thereafter the partnership deed dated April 13, 1956, annexure A-I, was executed. It was at that time agreed that Gopal Singh and his two sons, Jagjit Singh and Gurcharan Singh, shall carry on the business of the firm Golden Chemical Works. This was agreed to by the remaining partners, namely, Joginder Singh, Balwant Singh and Dhanwant Singh. It would be seen that the concern, Golden Chemical Works, had been carried on by the Hindu undivided family prior to the coming into being of the partnership deed in question. The said concern had a goodwill which, with the consent of all concerned, was acquired by Gopal Singh and his two sons, Jagjit Singh and Gurcharan Singh. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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