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Section 64(1) of the Income-tax Act, 1961 - Transfer of assets - For benefit of spouse or minor child - Whether in a case where in terms of 'trust deed income of trust was to be accumulated and to be handed over to minor son of assessee on attaining majority, section 64(1) was applicable - Held, no FACTS As per the terms of the trust deed, the income of the trust was to be accumulated and to be handed over to the minor son of the assessee on his attaining majority. The Commissioner invoked provisions of section 263 and held that the income derived by the trust was to be included in the assessment of the assessee under section 64(1)(iii) read with Explanation 2A. On appeal, the Tribunal set aside the order of the Commissioner passed under section 263. On reference : HELD It was held in the case of CIT v. M.D. Veeranarasimhaiah [1988 ] 174 ITR 435 (Guj.) that since the income had to be accumulated and the minor children had no right to receive that income, nothing had accrued to the minor children and consequently the said income could not be included in their father's income. It was a case of a deferred benefit, not being for a minor child. Accordingly, it was held that section 64(1)( vii) was not applicable. The aforesaid decision directly covered the point. The Tribunal was, therefore, justified in setting aside the order passed by the Commissioner under section 263. CASES REFERRED TO Yogindraprasad N. Mafatlal v. CIT [1977] 109 ITR 602 (Bom.) and CIT v. M.D. Veeranarasimhaiah [1988] 174 ITR 435 (Kar.). H. Raghavendra Rao for the Applicant. G. Sarangan, K.S. Ramabhadran and Gajendra Rao for the Respondent. JUDGMENT Bhat, J.-The question referred to us under the provisions of the Income-tax Act, 1961 ('the Act'), reads thus: "On the facts and in the circumstances of the case, was the Appellate Tribunal right in law in cancelling the order passed by the Commissioner of Income-tax under section 263 ?" 2. The Commissioner invoked the provisions of section 263 and directed the ITO to include in the assessment of the assessee, herein,…

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