Spouse's partnership income cannot be clubbed unless the assessee is a partner in that very firm.

Clubbing under section 64(1)(i) applies only where the individual is a partner in the firm from which the spouse derives income by membership. As the assessee had ceased to be a partner before his wife was admitted as a partner, her share of profits did not arise from a firm in which he was a partner and could not be included in his total income. Section 187, dealing with change in the constitution of a firm, was held irrelevant and could not be used to enlarge the scope of the clubbing provision.

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Issues: Whether the income arising to the assessee's wife from her admission as a partner in a firm could be clubbed in the assessee's total income under section 64(1)(i) of the Income-tax Act, 1961.

Analysis: Section 64(1)(i) applies only when the individual is himself a partner in the firm from which the spouse derives income by membership. On the facts found, the assessee ceased to be a partner before the wife became a partner. The spouse's share of profits therefore did not arise from membership in a firm in which the assessee was a partner. Section 187, dealing with assessment of a firm on change in its constitution, had no bearing on the clubbing provision and could not be imported to enlarge the scope of section 64(1)(i).

Conclusion: The wife's income from the firm was not liable to be included in the assessee's total income; the question was answered in the negative and in favour of the assessee.

Ratio Decidendi: Clubbing under section 64(1)(i) is attracted only where the individual is a partner in the very firm from which the spouse derives income by membership, and the provision cannot be extended by reference to section 187.

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