9911796707
TMI Blog1982 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 assessee's wife's share of profit of Rs. 20,112 in the total income of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 this clause shall apply in relation to any income arising to the spouse whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of cl. (ii) of sub-s. (1) of s. 64 of the Act are not applicable in the assessee's case, we need not go into the proviso to that clause or Expln. (1) to s. 64 on which the ITO had relied. It is a well-known canon of construction that the descriptive words used in a particular provision of a Statute take colour or meaning from each other. Therefore, we are not prepared to accept the submissions made on behalf of the revenue that the share of profit of the assessee's wife could fall within the expression "any other form of remuneration" used in cl. (ii) of sub-s. (1) of s. 64. Again in the expression "remuneration" has also received the legal meaning in numerous decided cases. The remuneration is an amount received by a person for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
