Clubbing of spouse's share income under section 64 does not apply to a karta assessed in representative capacity.

Section 64 clubbing does not apply where the assessee is assessed only in a representative capacity as karta of a Hindu undivided family and not in an individual capacity. On that basis, a spouse's share income from a firm is not includible in the assessee's total income merely because the assessee is a partner as karta of the HUF. The principle was taken from earlier decisions interpreting "individual" in section 64 to exclude representative assessees and was followed consistently in later decisions.

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

Analysis: The question was covered by earlier decisions holding that the expression "individual" in section 64 applies only to an assessee assessed in his individual capacity and not to one assessed in a representative capacity such as a karta of a Hindu undivided family. Where a partner joins a firm as karta of a Hindu undivided family, the mere fact that the spouse is also a partner does not attract the clubbing provision. The same principle had been followed in later decisions of the Court.

Conclusion: The share income of the assessee's wife was not includible in the assessee's total income; the question was answered in the affirmative, in favour of the assessee and against the Revenue.

Ratio Decidendi: Section 64 clubbing provisions do not apply where the assessee is assessed only in a representative capacity and not as an individual.

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