CONTROLLER OF ESTATE DUTY GUJARAT-I, AHMEDABAD vs MRUDULA NARESHCHANDRA

The Supreme Court held that under Section 36 of the Estate Duty Act, 1953, the value of a deceased partner's interest in a partnership firm, including goodwill, is liable to estate duty. The Court clarified that while a partner does not have a proprietary interest in the firm's assets during the partnership, they possess a marketable interest in the goodwill, which constitutes 'property' under Section 2(15) of the Estate Duty Act. The appeal of the Revenue was allowed, confirming that the goodwill of the firm passes on the death of the partner and is subject to estate duty.