RAMANUJAM J.

As both the cases raise substantially the same points, they are dealt with together The first case is with reference to an assessment made under the Wealth-tax Act while the other is with reference to an assessment made under the Estate Duty Act. As the questions involved in T.C. No. 49 of 1967 are more comprehensive, we take up that case first for consideration

One T. R. Narayanaswami Naidu was the karta of a joint Hindu family. The joint family properties included a building called "Nataraja Nilayam" constructed in the year 1942 at Palani. It had been set apart for use of pilgrims visiting the town and admittedly the said building was not used for any private purposes of the family. The family properties were partitioned under a partition deed dated March 1, 1950, between the said Narayanaswami Naidu and his adopted son, Rajasekaran, as also minor, Devarajan, the adopted son of his pre-deceased son. Under that partition the building in question was directed to be maintained by Narayanaswami Naidu with the income from certain lands over which he had been given a life-interest. The partition deed further provided that after the death of Narayanaswami Naidu, the building has to be maintained by his daughter-in-law, one Janaki Ammal, with the income from the same lands, and that after her death, Rajasekaran and Devarajan were to maintain the building with the income from the same lands. Subsequent to the partition deed, a family settlement deed was executed on February 5, 1958, under which Janaki Ammal was deprived of her right to manage the building and also her right with regard to the lands with the income of which the building has to be maintained, and instead it was provided that after the death of Narayanaswami Naidu the lands should be equally divided between Rajasekaran and Devarajan and enjoyed with absolute rights, subject to their liability to maintain the said "Nataraja Nilayam". Narayanaswami Naidu died on December 31, 1958. At the time of his death he was a partner in the firm of Messrs. T. R. Narayanaswami Naidu and Co., having a 3/16th share in the profits and losses of the said firm. That firm was the managing agent of one Coimbatore Pioneer Mills Ltd. On the date of his death, the deceased had a share capital of Rs. 1, 200 to his credit, and his share in the profit and interest amounted to Rs. 19, 233The accountable persons filed an estate duty return admitting a net dutiable estate of Rs. 3, 66, 947. The said sum included the share capital and the share of profit and interest of the deceased in the managing agency firm, but did not include the value of the share of the deceased in the goodwill of the said managing agency firm. It also did not include the value of the building "Nataraja Nilayam."

The Assistant Controller of Estate Duty, however, proposed to value the building at Rs. 62, 000 and 3/16th share in the goodwill of the firm at Rs. 66, 000 and to include the same in the estate of the deceased. The accountable persons objected to this proposal and contended that the value of the building could not be included in the estate of the deceased because it had been set apart only for charitable purposes, and that, in any event, the value of the building was only Rs.30, 000. With regard to the goodwill, it was contended that in the case of managing agency business, there was no goodwill at all, and that in fact the accountable persons had not obtained any amount from the firm towards the value of the deceased's share in the goodwill of the firm. The Assistant Controller, however, overruled these objections and held that the building was not a trust property and that it was owned by the deceased at the time of his death, and that, therefore, its value at Rs. 62, 000 was includible in the estate of the deceased. On the question of goodwill, the Assistant Controller held that the managing agency firm did possess goodwill and on the death of the deceased the accountable persons were entitled