Broad reading of technical qualification under clubbing rules allows relevant trade experience to qualify for exemption.

For purposes of the proviso to section 64(1)(ii) of the Income-tax Act, 1961, the expression "technical or professional qualification" was treated broadly enough to include relevant experience gained over years in a trade, where that experience is necessary to carry on the business and no statutory qualification is prescribed. A certificate from a competent authority confirming such experience may suffice; a formal degree, diploma, or other statutory credential is not invariably required. On that basis, the salary income was not to be clubbed in the assessee's total income under the proviso.

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Issues: Whether the proviso to section 64(1)(ii) of the Income-tax Act, 1961 applied so as to exclude the husband's salary income from clubbing in the assessee's total income.

Analysis: The Tribunal found the facts to be on all fours with an earlier decision where it had been held that the expression "technical or professional qualification" in the proviso is wide enough to include experience gained over years in a particular trade, where such experience is necessary to carry on the business and no statutory prescription of qualification exists. It was also accepted that qualification need not invariably be a certificate, degree, or diploma issued by a statutory authority, and that a competent authority's certification of the relevant experience may suffice.

Conclusion: The proviso to section 64(1)(ii) was held applicable, and the salary income was not liable to be included in the assessee's total income; the Revenue's appeals failed.

Ratio Decidendi: For the purposes of the proviso to section 64(1)(ii) of the Income-tax Act, 1961, "technical or professional qualification" may include relevant experience acquired over time in a trade, where such experience is necessary for carrying on the business and is duly certified by a competent authority.

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