Salary to wife cannot be allowed for mere possession of knowledge if the same is not been applied

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HIGH COURT OF HIMACHAL PRADESH

Yashwant Chhajta

v.

Deputy Commissioner of Income-tax

IT Appeal Nos. 66 & 67 of 2008

December 28, 2012

 

In the instant case, as noticed hereinabove, the assessee’s wife though was in possession of technical qualification but the assessee was required to prove conclusively that his wife Smt. Nanda Chhajta was in fact looking after plans for execution work and was taking administrative decisions. The assessee cannot be given benefit merely on the ground that the deduction has been allowed to the assessment years 2001-2002 and 2002-2003. The order passed by the Income Tax Appellate Tribunal is reasoned and the proviso to section 64(1)(ii) have been correctly appreciated.