COMMISSIONER OF INCOME TAX Vs. NAVNEET PRIYA DAS

JUDGEMENT

(1.) THE Tribunal, Allahabad has referred the following question of law under s. 256(1) of the IT Act, 1961 (the 'Act'): Whether there was sufficient material before the Tribunal on the basis of which it could legally hold that the proviso to s. 64(1)(ii) of the Act as added by the Taxation Laws (Amendment) Act, 1975, was applicable to the facts of this case and as such the salary paid to the assessee's wife was not includible in his income under the provisions of said section -

(2.) THE present reference relates to asst. yr. 1978 -79.

(3.) BRIEFLY stated the facts giving rise to the present case are referred as follows : Assessee is proprietor of Priya Picture Palace at Alinagar, Gorakhpur. Return of income for asst. yr. 1978 -79 was filed on cum P&H a/c enclosed with the return, assessee had claimed payment of salary of Rs. 12,300 to his wife, Smt. Indu Agarwal. The assessment was originally made under s. 143(3) but it was set aside by the AAC, Gorakhpur vide his order included salary payment of Rs. 12,300 also and which was disallowed for the same reasonings as in past years. The Salary payment of Rs. 12,300 to Smt. Indu Agarwal was disallowed as per following observations : Salary to spouse :