9911796707
TMI Blog1988 (9) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... iage expenses and for making purchases of the customary gifts to be given to her at the time of her marriage. The trust would come to an end on the said Sangeeta being married and on the trustees spending the amounts of the entire trust fund for the defraying marriage expenses and for buying the customary gifts. 3. The WTO included this amount in the net wealth of the assessee and CWT (A) confirmed the addition. The assessee is now in further appeal before us. 4. We have heard the parties. As already stated the assessee is the grand father of the beneficiary, Kum. Sangeeta. The asst. yr. is 1985-86. It is not disputed that this amount was not includible upto the asst. yr. 1984-85. This amount, according to the Department, is includibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ludible under s. 4(1)(a)(vi) of the Act. However, the transfer is held to be not "for the immediate or deferred benefit" of the assessee's grand daughter, Sangeeta, the amount would not be includible under this provision. 6. In this case the amount in question is not for immediate benefit of the child in question. This is because of the said minor child is not entitled to receive any benefit immediately. The benefit is to be received by her at the time of her marriage or at the time when she completed the age of 25 years. The law prohibits the marriage of a minor child. Consequently, it is presumed that the minor child in question would get married after she attains majority. Thus the benefit under the trust deed is to be received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with s. 64(v) now s. 64(1)(vii) of the IT Act, 1961, where identical words viz. "immediate and deferred benefit" of the minor had been used. The High Court held that where the assets are transferred for the benefit of a minor child and no benefit is accrued to the child till he or she attains majority, the interest of the child in the assets transferred is not a vested interest, and that said interest was contingent and as such s. 64(v) of the IT Act, 1961 as it then stood would have no application where the interest of the minor child in transferred assets is contingent and not vested. Thus the decision of the Bombay High Court supports the view which we have taken. We further find that the said decision of the Bombay High Court was follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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