Rajaratnam V. The Commissioner Of Stamps

1938   Present : Soertsz J. and de Kretser A.J.

RAJARATNAM v. THE COMMISSIONER OF STAMPS.

 192-D. C. Jaffna, 58.

Estate duty-Business carried on under vilasam-Admission of sons into partnership-No agreement in writing-Validity-Registration, of business-Death of father-Claim by sons of a gift of one-third share of partnership-Proof of gift-Ordinance No. 7 of 1840, s. 21 (4)-Estate Duty Ordinance, No.,8 of 1919, s. 8 (1) (c).

A person, who carried on business under the vilasam S. V., decided in 1929 to admit his two sons into partnership and registered the business under the business name S. V. The business was described as a partner ship, the partners being the father and the two sons. No written agreement of partnership was entered into. Although regular accounts were kept, there was no separate account of the capital of each partner nor was the distribution of profits and loss shown as against each partner.

In October, 1933, a document was executed declaring that they had been partners in the business. On the death of the father in December, 1933, it was claimed on behalf of the sons that S. V. had gifted a one-th

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