S.R. RAJASEKHARA MURTHY, J. - (1.)THE following question has been referred by the Tribunal, Bangalore Bench, under s. 256(1) of the IT Act, 1961, for the opinion of this Court :
"Whether the Tribunal is correct in deciding that technical or professional qualification involves a university degree in Engineering, Medicine or Law, etc., or membership of recognized professional societies like the Institute of Chartered Accountants, and that plain experience in any field in itself cannot be treated as a technical or professional qualification within the meaning of the proviso to section 64(1)(ii) of the IT Act, 1961 ?"

(2.)THE assessee was getting salary as managing director of M/s Gopal Films since 1964. His wife, Smt. Indira, became a partner in the said firm in the year 1969. THE assessee was paid salary as the managing director of the firm. THE ITO included in the assessment of Shri D. Rajagopal, the husband, the salary which he was drawing as managing director. THE assessee claimed that the salary received by him from the firm should be excluded from his assessment under s. 64(1)(ii) of the Act and should be included and assessed in the hands of his wife. THE ITO rejected the said contention and included the salary income from the firm in his assessment as individual.
Being aggrieved by the said order, the assessee preferred an appeal before the AAC. The AAC dismissed the appeal and upheld the assessment. The assessee went up in further appeal before the Tribunal.

The Tribunal noticed that the assessee did not possess any technical or professional qualification within the meaning of the proviso to s. 64(1)(ii) of the Act and the assessee was only a graduate. The Tribunal held that the salary income of the assessee should be excluded from the assessment of the assessee and included it with the income of the spouse who was a partner in the said firm. The Tribunal also held that the assessee's wife had substantial interest in the firm being a 20 per cent shareholder.

(3.)THE question is whether the Tribunal is justified in directing exclusion of the salary income of the assessee in his assessment for the relevant year under s. 64(1)(ii) of the Act. Sec. 64(1)(ii) provides for exclusion of any remuneration received by a spouse from the concern in which the individual has substantial interest. THE only exeption stated in the proviso thereunder is the income derived by a spouse possessing technical or professional qualifications and such income should be solely attributable to the application of his or her technical or professional knowledge and experience.
Sec. 64(1)(ii) is set out hereunder :

"(1) 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 this clause shall apply in relation to any income arising to the spouse where the spouse possesses technical or professional qualification and the income is solely attributable to the application of his or her technical or professional knowledge and experience."