COMMISSIONER OF INCOME TAX Vs. NARASIMHAN

JUDGEMENT

(1.) THE question referred to us under the provisions of the Income-tax Act, 1961 ("the Act" for short), reads thus :

(2.) THE Commissioner of Income-tax invoked the provisions of section 263 and directed the Income-tax Officer to include in the assessment of the assessee, herein, the income derived by a trust since the assessee's minor son was the sole beneficiary of the trust. THE commissioner, for this purpose, invoked the provisions of section 64(1)(iii) of the Act read with Explanation 2A. THE assessee contended that as per the trust deed, the income of the trust was to be accumulated and to be handed over to the minor son on his attaining majority and, therefore, section 64(1) was not attracted. THE Appellate Tribunal has upheld this contention of the assessee. THE assessee had pointed out that, under the trust deed, the income had to be accumulated beyond the date of minority and, therefore , it was a case of a deferred benefit for a person who becomes a major subsequently and not a case of deferred benefit for a minor child.

(3.) THE question referred to us is, accordingly, answered in the affirmative and against the Revenue. References are answered accordingly.