TMI Blog1974 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal to the Central Board of Direct Taxes. The Board held that a business firm does have a goodwill. It, however, adopted a different measure for computing the goodwill of the share of the deceased. In the firm, M/s. Bishambhar Dass Kishan Lal, the share of the goodwill of the deceased was assessed to Rs. 2,500. The Board upheld the addition of the value of jewellery but estimated its value at Rs. 35,000 on the ground that some part of the jewellery must have belonged to the wife of the deceased as her stridhan and so it could not be held to be deceased's property at the time of the death of the deceased. At the instance of the assessee this court required the Board to submit a statement of the case for the opinion of this court on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t this principle will apply to the goodwill and other assets of the partnership. This decision, therefore, rules that a share of a partner in a partnership will devolve on the legal representatives of the deceased partner, in the absence of anything in the partnership deed to suggest that on such death the heirs will not get any share in any particular assets including the goodwill. In the absence of any material that in the case of these two partnership firms the heirs of the deceased were not entitled to have any share in the assets of the deceased, it must follow that a share in the goodwill of the partnership firms also passed on the death of the deceased. In the next place it was submitted that a partnership firm carrying on the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured by someone else the business has no goodwill. In the decision relied upon it was held that goodwill is an advantage which a trade or business develops by virtue of factors like standing of the business, the personalities who are engaged in the business, its location and the like. These contributing factors are not necessarily confined to manufacture business. These are qualities which a person who is carrying on the business develops by the method of doing business to attract custom. It cannot be as a matter of law laid down that a business in ordinarily available and standard articles cannot have any goodwill. That leads us to the next aspect of the first question, namely, the computing of the value of the goodwill. The Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the jewellery was such which males usually wear or possess. On the other hand, the finding is that some part of it must have belonged to his wife as stridhan. Jewellery normally is possessed by womenfolk. Since the deceased migrated from one country to another he must have taken the entire jewellery of his wife with him, as he was the head of the family. The fact that he brought jewellery along with his wife and children will not necessarily mean that the jewellery was his personal property. In our opinion in the absence of any proper detail the authorities were in error in assuming that the entire lot of jewellery he brought with him must have belonged to the deceased personally. The addition of Rs. 35,000 under this head was, in our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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