CONTROLLER OF ESTATE DUTY Vs. IBRAHIM GULAM HUSSAIN CURRIMBHOY

JUDGEMENT

(1.) ONE Abdul Rahim Currimbhoy died on January 10, 1960. He was a partner till his death in the firm of Messrs. Abdul Rahim and Brothers which was originally constituted by a deed of partnership dated September 22, 1949, but subsequently reconstituted as and from December 10, 1953, by a subsequent deed dated April 22, 1954. The firm was carrying on business in crockery, glassware and hardware. The deceased's share in the partnership was 3 annas in the rupee in terms of the reconstituted partnership deed dated April 22, 1954. Clause 14 of that partnership deed was as follows :

(2.) IN the books of the firm the goodwill account stood at Rs. 16,148 as on October 31, 1959. The deceased had, on October 26, 1954, gifted to his five sons, Yusufali, Nazimali, Akbarali, Abdullah, Anvarali and to his daughter, Zarinabai, a sum of Rs. 10,000 each. This was done by debiting to the deceased's account in the books of the firm and by giving corresponding credit in the individual accounts of the six donees in the books of the same firm. Under the reconstituted partnership deed dated April 22, 1954, the deceased's major sons, Yusufali and Nazimali, had become partners with one anna share each and his three minor sons were admitted to the partnership to the extent of one anna in the rupee. The deceased's daughter, Zarinabai, was not a partner in the said firm. The sum of Rs. 50,000 gifted to the five sons remained deposited with the firm as their share capital and the capital account of each of the five sons of the deceased stood credited in a sum of Rs. 50,000 in the books of the firm. The amount of Rs. 10,000 gifted by the deceased to his daughter also remained invested as a deposit in her account with the same firm.

(3.) AS regards the second question, it is seen that it is covered by the decision in T.C. No. 292 of 1968 (Radhabai Ramchand v. Controller of Estate Duty, 1975 98 ITR 660), just now rendered. In view of the said decision, this question has to be answered in the negative and in favour of the revenue.