TMI Blog2001 (5) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... T. C. No. 44 of 1992 under section 256(2) of the Income-tax Act, 1961 (in short "the Act"), the following question has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "C" (in short "the Tribunal"): "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the trust settled for the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expressed earlier, In some cases the commissioner of Income-tax (Appeals) deleted the addition. The matter was carried in appeal before the Tribunal by the Revenue. It was the Revenue's stand that in the absence of a definite or known beneficiary, creation of the trust itself was invalid. The Tribunal did not accept the stand. A prayer for reference under section 256(1) of the Act was turned down. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property, and (e) transfer of property to the trust. According to learned counsel for the Revenue except condition (c) all other conditions are present here. We find that it is not a case where the beneficiary was unknown or indefinite. In fact it was clearly stipulated that the beneficiary was the first son of Shri Rakesh Mohan. At this juncture, it would be also relevant to take note of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he eldest son does not take effect for the reason that it does not extend to the whole of A's remaining interest in the property. A transfer cannot be made directly to an unborn person, for the definition of transfer in section 5 is limited to living persons. Such transfer can only be made by the machinery of trusts. Possibly, to express this distinction, the expression "for the benefit of" has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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