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Interpretation of technical or professional qualification under the proviso to section 64(1)(ii) of the Income-tax Act, 1961. Analysis: The case involved a question referred by the Income-tax Appellate Tribunal regarding the interpretation of technical or professional qualification under the proviso to section 64(1)(ii) of the Income-tax Act, 1961. The assessee, a managing director receiving salary from a firm in which his wife was a partner, claimed that his salary should be excluded from his assessment and assessed in his wife's hands. The Tribunal held that the assessee did not possess technical or professional qualifications as required by the proviso and directed the salary to be assessed in the spouse's hands. The proviso to section 64(1)(ii) excludes income of a spouse if they possess technical or professional qualifications and the income is attributable to the application of such knowledge. The court emphasized that the proviso must be strictly construed, requiring the spouse to have qualifications relevant to the position held and the income derived to be linked to their technical or professional knowledge. In this case, the assessee only had a degree qualification and lacked specific technical or professional qualifications related to the position of managing director. The court concluded that the mere possession of a degree qualification, without specific technical or professional relevance to the position, does not meet the proviso's requirements. As the salary was not attributable to the application of technical or professional knowledge, the Tribunal was justified in excluding the income from the assessee's assessment and directing it to be assessed in the spouse's hands. The court reframed the question to address whether the salary should be assessed in the assessee's hands or aggregated with the spouse's income, ultimately ruling in favor of the Tribunal's decision to assess the salary in the spouse's hands.
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