COMMISSIONER OF INCOME TAX Vs. LALJI AGARWAL

JUDGEMENT

(1.) THE following question has been referred for the opinion of this court by the Income-tax Appellate Tribunal for the assessment year 1976-77 :

(2.) THE facts are that the wife of the assessee received salary, being a director of the company, Ashok Udyog Private Limited of which the assessee was the managing director. THE income of the assessee's wife was included in the hands of the assessee under Section 64(1)(ii) of the Income-tax Act, 1961, without allowing standard deduction. THE question arose whether the net income after allowing standard deduction is to be included in the income of the assessee under Section 64(1)(ii) or the gross income.