| Case ID |
178afe13-8d61-4d31-a29c-a21244ef1780 |
| Body |
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| Case Number |
MATTER No. 66 OF 1971 |
| Decision Date |
Jan 08, 1975 |
| Hearing Date |
|
| Decision |
The court held that for determining the duty payable by the personal representative (widow) of the deceased, the share of the deceased in the firm, including its goodwill, should be valued according to the partnership deed. However, for the surviving partners, the market value of the goodwill minus the value stated in the partnership deed should be considered. Thus, the decision recognized the dual approach needed for assessing estate duty: one for the deceased's representatives and another for the surviving partners, ultimately impacting the liability of estate duty payment. |
| Summary |
This case revolves around the valuation of goodwill in a partnership following the death of a partner, John Galstaun Apcar. The Calcutta High Court was tasked with determining the estate duty payable on the deceased's share in the partnership, which included goodwill. The partnership deed stated that the goodwill was valued at Rs. 1,00,000. However, upon the death of Apcar, the Assistant Controller of Estate Duty increased this valuation to Rs. 5,00,000, leading to an appeal by the surviving partners. The Tribunal ultimately ruled in favor of adhering to the partnership deed for the valuation of the deceased's estate. This case highlights critical considerations in estate duty assessments, particularly in determining the value of partnership interests and goodwill upon the death of a partner. The ruling emphasized the need for a clear distinction between the valuation for the deceased's estate and the benefits accrued to surviving partners due to the cessation of the deceased's interest in the partnership. This case is significant for legal practitioners dealing with estate planning, tax implications of partnership interests, and the valuation of goodwill in estate duty assessments. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
Sabyasachi Mukharji,
R.N. Pyne
|
| Lawyers |
Not available
|
| Petitioners |
John Gregory Apcar
|
| Respondents |
Controller of Estate Duty
|
| Citations |
1979 SLD 1159,
(1979) 119 ITR 192
|
| Other Citations |
Not available
|
| Laws Involved |
Estate Duty Act, 1953
|
| Sections |
7,
64(1)
|