TMI Blog1987 (8) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... tue of her long experience in the service of the company and, therefore, the salary received by her cannot be included in the assessment of the assessee, namely, Shri Sorabji Dorabji ? " The respondent is an assessee to income-tax. We are concerned with the assessment year 1978-79. A sum of Rs. 8,400 was included in the assessable income of the assessee for the year 1978-79. The said sum represented salary paid to his wife, Mrs. Soonoo Sorabji, who was director of the company, M/s. Sorabji Co. (P) Ltd. The respondent-assessee has substantial interest in the company. The Income-tax Officer invoked the provisions of section 64(1)(ii) of the Income-tax Act. The assessee claimed that the income should not be included in view of the proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is clear that Smt. Sorabji Dorabji (? Soonoo Sorabji) has acquired sufficient professional experience by virtue of her experience as a director from 1963 onwards. The acquisition of such expertise is by virtue of her experience as a director from 1963 onwards. The acquisition of such expertise would amount to possessing a professional qualification as contemplated by the proviso to section 64(1)(ii). The salary that is paid to her should be attributed to the application of her professional knowledge and experience. It is not an excessive remuneration paid to her because she is a director of the company and because the assessee has a substantial interest in that company. It is only salary of Rs. 700 per mensem which would be a normal rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the crucial words in the proviso to section 64(1)(ii) occurs, namely, " technical or professional qualifications " or " technical or professional knowledge or experience ", requires a degree or diploma of a university or other similar institution. The practical experience acquired by Mrs. Sorabji Dorabji by virtue of her being a director in the line for sufficiently long number of years will be sufficient to hold that she has professional knowledge and experience in the line. In this context, we would usefully quote the observations of the Andhra Pradesh High Court in the decision in Batta Kalyani v. CIT [1985] 154 ITR 59, at page 62. Delivering the judgment of the Bench, Anjaneyulu J. observed as follows : " We find considerable force in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofession or technique. If by the use of that expertise in the profession or technique, the person concerned earns salary, then the latter part of the proviso is also satisfied. " We concur with the said observations. The question as to whether Smt. Soonoo Sorabji (Mrs. Sorabji Dorabji) had sufficient technical or professional knowledge and experience is ordinarily a question of fact. As the final fact-finding authority, the Appellate Tribunal has found that she has such technical or professional knowledge and experience. It has not been shown that the said finding is in any way irrational or unsustainable. In the circumstances, we answer the question referred to us in the affirmative, against the Revenue and in favour of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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