Law: Income Tax Act, 1961

Section: 64,64(1)(ii)

(a) Income-tax--Total income---Inclusions in total income---Income of spouse from concern in which assessee has substantial interest---Exclusion from provision where spouse has professional or technical qualification---Exclusion provision should be construed liberally---Qualification is not restricted to those recognised by universities ---Assessee owning jwellery shop---Spouse of assessee having skill and experience in evaluating jewellery---Salary paid to spouse was not includible in total income of assessee---Indian Income Tax ,Act, 1961, S.64. A beneficial provision should be liberally construed. While construing the provisions of a statute, due consideration should be given to the context in which it occurs, the object of the provision as also the fact that the statute is meant to be applied uniformly to all and is not meant to be applied to a few. The object of section 64(1)(ii) of the Income Tax Act, 1961, is to ensure that the income received by the assessee is not diverted by claiming that apart of that income has been paid by way of remuneration to the spouse. Having regard to the intimate relationship between the spouses, the income received by one of them from the business owned or run by the other is presumed to be the income earned by the spouse who owns or runs the business except in the cases covered by the proviso. The proviso to section 64(1)(ii) is meant to be applied to all assessees irrespective of their qualification or the nature of the trade or business carried on by them. The spouse of such an assessee would be governed by the proviso to section 64(1)(ii). The words "technical or professional qualification" do not necessarily connote a qualification conferred by a recognised university after examining the candidate who has undergone a course of study in the technical subject or a course of study preparing him for a profession like law, accountancy, etc. The term "qualification" must be given a wide meaning as referring to the qualities which are required to be possessed by a person performing the work that he does, so long as that work is capable of being regarded as technical or professional. The word "professional" is, a term capable…

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