- (1.) Heard learned Counsel on both sides.
(2.) This civil appeal is filed by the Controller of Estate Duty, Kerala, against the decision dated 18th July, 2003, delivered by the Kerala High Court in Tax Reference No. 62 of 1998.
(3.) One V.G. Saraf passed away on 18th October, 1984. He was a partner in M/s. Saraf Trading Corporation, a partnership Firm carrying on business as commission agents and as exporters of Tea. The Firm was constituted under Deed of Partnership dated 27th November, 1963. The Firm had three partners. The deceased had fifty per cent shares in profit and loss. On 16th September, 1981, the Firm was re-constituted with the admission of one more partner and a minor. The Assistant Controller of Estate Duty, inter alia, held that, for determining the value of goodwill, there were two methods of valuation, namely, super-profit method and total capitalization method. The Assistant Controller preferred the super-profit method. It may be noted that, in this case, the method is not in dispute. What is in dispute is the application of the super-profit method to the facts of the present case. Applying the super-profit method, the Assistant Controller applied the multiplier of three years' purchase whereas the assessee-respondent contended that 3X was excessive. The Assistant Controller further held that refund of income tax, which became due after the demise of V.G. Saraf, constituted property of the Deed, which was also disputed by the legal representatives of the deceased.;