1983 (11) TMI 169

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....nt for consideration is whether the remuneration received by the assessee's wife Smt. Savitha Balakrishnan from Girinath Agencies (P.) Ltd. in which she is also a director holding 50 per cent share of the limited company is to be clubbed or not. During the previous year ending on 31-3-1979 which is the first year of the business, Smt. Savitha Balakrishnan was paid remuneration of Rs. 12,000 per an....

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....erience in the business of building materials and, therefore, proviso to section 64(1)(ii) was applicable. He further contended that the amendment in Explanation 1 was made with effect from 1-4-1980 and, therefore, such amendment was not applicable for the assessment year 1979-80. In other words, he contended that the clubbing of remuneration of assessee's spouse was not warranted by Explanation 1....

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....t science. Therefore, mere experience, if at all it could be attributed to her as the proprietrix of the business alone, does not amount to technical or professional qualifications and it should be shown that the payment of remuneration was solely attributable to the application of such technical or professional knowledge and experience. The cases relied upon by the assessee's representative shoul....

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.... accepted for the simple reason that the provisions of law should be harmoniously construed and made them workable and not otherwise. Explanation 1 is only clarificatory in nature and it can be presumed that it was the intention of the law even before such amendment as it contemplates only the procedure of clubbing and not clubbing itself. The law as has been rightly contended by the learned couns....