Clubbing of spouse's partnership income fails where the assessee is a partner only as karta of a Hindu undivided family.

Section 64 of the Income-tax Act, 1961 does not permit clubbing of a spouse's partnership income in the individual assessment of a person who is a partner only in a representative capacity as karta of a Hindu undivided family. The controlling principle applied was that income arising from the firm cannot be included in the partner's personal total income where the partnership status is not individual but representative, and the earlier Supreme Court ruling on the same point governed the facts. On that basis, the wife's share income was not includible in the assessee's individual assessment, and the Tribunal's view was affirmed as consistent with the settled rule.

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Issues: Whether the share income of the assessee's wife from a partnership firm could be included in the assessee's total income under section 64 of the Income-tax Act, 1961, when the assessee was a partner only in his capacity as karta of a Hindu undivided family.

Analysis: The controlling principle was that where a person is a partner in a firm not in his individual capacity but as karta of a Hindu undivided family, the clubbing provision in section 64 cannot be invoked to include in that person's individual assessment the income accruing to his from the same firm. The earlier Supreme Court ruling on the same point was treated as fully governing the facts, and the Tribunal's view was found to be consistent with that rule.

Conclusion: The wife's share income could not be clubbed in the assessee's individual assessment under section 64 of the Income-tax Act, 1961. The question was answered in the affirmative and against the Revenue.

Ratio Decidendi: Section 64 does not permit clubbing of a spouse's partnership income in the individual assessment of a person who is himself a partner only in a representative capacity as karta of a Hindu undivided family.

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