R S KINI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under s. 256(1) of the IT Act, 1961 (`the Act'), the following question has been referred by the Tribunal to this Court at the instance of the assessee, for its opinion:

(2.) THE assessee in an individual and the proceedings relate to his assessment for the asst. yr. 1976-77. THE assessee's business is manufacturing of gaskets and he is carrying on the said business as a proprietary concern under the name and style of Cypher Engineering Co. THE assessee's wife is a matriculate. She jointed a German company known as Freidrich Udhe Gmbh erection office, Bombay, in November, 1965 as a Confidential Secretary to the Managing Director. She was also looking after accounts and office management. Up to 1971 she was drawing Rs. 700 per month when she left the job. She married the assessee in 1971. In April, 1972, she joined the assessee's business and the admitted position is that she was attending to the correspondence, bank matters and other things. THE salary paid to her by the assessee was claimed as a deduction in computing his income. THE claim was disallowed by the ITO as according to him, the payment attracted the provisions of s. 64(1)(ii) of the Act. On appeal, the AAC allowed the claim as, in his opinion, the assessee'' wife possessed technical or professional qualification and as such she satisfied the provisions of proviso to s. 64(1)(ii). THE Revenue went in appeal to the Tribunal. THE Tribunal, on elaborate discussion, held that the wife of the assessee did not possess either technical or professional qualification and as such she did not satisfy the requirements of the proviso to s. 64(1)(ii). Accordingly, the Tribunal reversed the order of the AAC and restored the order of the ITO. Hence, the assessee has come in reference against the order of the Tribunal.