Clubbing of spouse income under section 64 depends on comparing pre-clubbed total incomes before inclusion.

Under the Explanation to section 64(1), the assessing authority must first compare the husband's and wife's total incomes before including the spouse's share income, and the clubbed income is to be assessed in the hands of the spouse whose pre-clubbed total income is greater. On the facts noted, the husband's income exceeded the wife's even before clubbing, so the Commissioner's contrary interpretation was rejected and inclusion of the wife's share income in the husband's assessment was treated as proper.

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Issues: Whether, for inclusion of a spouse's share income under section 64(1), the individual in whose assessment the income is to be included must be determined by comparing the husband's and wife's total incomes before such inclusion, and whether the assessee's share income could be clubbed in the husband's hands on the facts.

Analysis: The Explanation to section 64 requires the assessing authority to identify the husband or wife having the greater total income, excluding the income sought to be clubbed, before making any inclusion. On the figures available, the husband's income was higher than the wife's income even before clubbing. The interpretation adopted by the Commissioner was therefore rejected, and the original inclusion of the wife's share income in the husband's assessment was held to be proper on that footing.

Conclusion: The appeal was allowed.

Final Conclusion: The decision affirms that, under section 64(1), the comparative total income of the spouses must be ascertained first on an excludable basis, and the spouse with the greater such income is the correct person in whose hands the clubbed income is to be assessed.

Ratio Decidendi: Under the Explanation to section 64, the spouse's total income must be compared before clubbing the relevant income, and inclusion is to be made in the assessment of the husband or wife whose pre-clubbed total income is greater.

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