TaxTMI 
TaxTMI 
1978 (8) TMI 119
X X X X Extracts X X X X
X X X X Extracts X X X X
....he addition for all the years. According to the AAC in the present case the beneficiary was not known and identifiable. It is against this order of the AAC that appeals have been filed so the Tribunal for all the four assessment years. 2. The assessee had executed a trust deed on 21st March, 1966 setting a sum of Rs. 25,000. It was duly registered. The relevant clauses of the trust deed are as under: "Whereas, I Umrao Kavur Bai, possessed of wealth acquired by me out of my own self acquisition and have full powers to dispose of the same in any manner I like: whereas I have a son by name Mr. Uttamchand Chordia; whereas I have considered it necessary and prudent to provide for the wife of my son Uttamchand Chordia; whereas therefore I h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....76. For the Department, stress is laid on the orders of the authorities below. It is pointed out that in the assessee's own case for the earlier years in ITA Nos. 2222 to 2226 (Mad)/76-77 order dt 25th Feb., 1978 the question has been decided against the assessee. The learned counsel has also referred to the decision in ITA Nos. 1617, 1618 & 2283 (Mad) 76/77 dt. 19th Nov., 1977 another case where the income of a similar trust was included in the author's income. 4. Though in the present case there is a decision of the Tribunal for acquisition earlier year, we find that was acquisition exparte order made by the Tribunal without the presence of the assessee. That decision would not, therefore, be binding on us for this year since the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....property by the settlor. The income from the property, therefore, has to be included in the total income of the settlor. 5. In our opinion both contentions are unfounded. That a settlor can create a trust even in favour of unborn persons is settled, provided it is clearly to be specified as to whom it would go when born. In the present case the trust deed is clear as to whom the property should go, namely, the wife of Uttamchand Chordi if he marries. Though at the moment the trust was created or even sometime later who the wife would be is not clear, the moment Uttamchand Chordia marries the wife would be a definite person. In case the marriage does not take place, other contingencies have been provided for. The beneficiary, therefore, c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ies have to see is whether such shares are known, and specific during the accounting period". A similar decisions was rendered in Suhashini Karuri vs. WTO (3). In Padmavathi's case dealing with s. 21(1) & (4) of the WT Act, their Lordships of the Gujarat High Court held: "Under the provision of sub-ss. (1) & (4) of s. 21 the Revenue would beneficiary concerned with the position which existed on the relevant valuation date, namely, 31st Dec., 1957, and even if there was a possibility of any variation in the constitution of the family in future, such variation would beneficiary immaterial and would not affect the application of sub-s. (1) of s. (21)." They repelled the argument of the learned Advocate General in that case that there ....