1982 (9) TMI 87

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....nsideration. The assessee's wife, Smt. Sudhesh Kohli joined the said firm as a partner. On 2nd April 1976, the said firm through its managing partner, executed a general power of attorney in favour of the assessee whereby the assessee was authorised to do various acts/things on behalf of the said firm. For the services rendered by the assessee, the said firm agreed to remunerate him at a stipulated rate of the total turnover. During the year under appeal, the assessee was given commission at 1% on all sales affected by the said firm. The 1% commission worked out to Rs. 34. The assessee's wife received her share of profit of Rs. 20,112 from the said firm. 3. While framing the assessment on the aforesaid facts, the ITO included the assesse....

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....the income of Rs. 20,112 earned by the assessee's wife could be considered as "any other form of remuneration." 6. We have carefully considered the rival submission of the parties and we find considerable force in the submissions made on behalf of the assessee. In order to better appreciate the rival stand taken by the parties, we reproduce below the relevant portion of s. 64. "64 (i) In computing the total income of any individual there shall be included all such income as arises directly or indirectly- (ii) to the spouse of such individual by way of salary, commission, fees or any other form of remuneration whether in cash or in kind from a concern in which such individual has a substantial interest. Provided that nothing in t....