TMI Blog2009 (4) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... Jose, the assessee's wife also is a partner in the said firm with a share of 20 percent The assessee filed his return for the impugned assessment year showing his income from various sources. In the course of assessment proceedings, the Assessing Officer found that Mrs. Annie Jose, wife of the assessee had received an allowance of Rs. 13 lakhs from the firm, M/s. Alukkas Jewellery. He held that the said allowance paid to the assessee' s wife is liable to be clubbed under section 64(1)(ii). Accordingly, he added this amount in the hands of the assessee. The Commissioner of Income-tax (Appeals) in first appeal found that Mrs. Annie Jose is entitled for the benefits as per the deed of partnership. It is in terms of the partnership deed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the respondent-assessee. Section 64(1)(ii) reads as below : "64 (1) In computing the total income of any individual, there shall be included all such income as arises directly or indirectly (ii) to the spouse of such individual by way of salary, commission, fees or any other form of remuneration whether in cash or in kind from a concern in which such individual has a substantial interest : Provided that nothing in this clause shall apply in relation to any income arising to the spouse where the spouse possesses technical or professional qualifications and the income is solely attributable to the application of his or her technical or professional knowledge and experience ;" A reading of the above provision of law mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r profession as provided in section 28(v). The law demands that any interest, salary, bonus, commission or remuneration by whatever name called due to or received by a partner of a firm, is to be assessed as profits and gains of business or profession. In the present Mrs. Annie Jose has complied with the above mandate of law by returning the allowances received from the firm as her income from business or profession. Section 28(v) deals with the assessment of such income in the hands of the partner herself. When the assessment of that amount is completed under the provisions of law contained in section 28(v), there is nothing left over to be clubbed under section 64(1)(ii). The amount which is contemplated for clubbing under section 64(1)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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