COMMISSIONER OF INCOME TAX Vs. RAMASWAMY P N

JUDGEMENT

(1.) AT the instance of the Revenue, the following two questions were referred to this court for its opinion :

(2.) THE admitted facts are :

(3.) SECTION 80L can be availed of only by an assessee as is obvious from the very opening expression, "Where the gross total income of an assessee........". A reference to s. 80A will reveal the deduction to be made in computing the total income of the assessee. For, s. 80A provides that in computing the total income of an assessee, there shall be allowed from his gross total income in accordance with and subject to the provisions of this Chapter, the deductions specified in ss. 80C to 80VV. Chapter VI-A relating to deductions to be made in computing the total income comprises only ss. 80A to 80VV. Thus, it is quite clear that the deductions to be made in computing the total income are available exclusively to the assessee. In this case, the dividend income of the assessee's wife is taken as the income of the assessee. Even if the assessee's wife were to be an assessee by herself, then, this dividend income shall not be treated as her income. The above circumstances will also reinforce the view that s. 80L is available only to the assessee. It is further clear that the ownership factor is not quite relevant in the application of s. 80L in the circumstances of this case. We have already pointed out that under s. 64, in computing the total income of any individual there shall be included all such income as arises directly or indirectly to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart. It is only after such inclusion of the above income to the assessee's income is the assessee entitled to claim exemption under s. 80L.