B. P. JEEVAN REDDY, J.

( 1 ) THE Income-tax Appellate Tribunal has referred the following question under section 256 (1) of the Income-tax Act, 1961, for the opinion of this court :"whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in concluding that the income form the properties settled in trust in favour of the minor beneficiaries could not be clubbed with the income of the assessee under section 64 (1) (vii) ?"

( 2 ) THE assessee in an individual. He was the owner of the house bearing Municipal No. 8-3-1032, Sreenagar Colony, Hyderabad. On 14/04/1975, he settled a half share in the said house in favour of his major son, Sri Paul Ravinder Ponnaiya. By another settlement deed dated 2/07/1976, he settled the other half of the house under a trust for the benefit of his two minor sons, Ezekiel and Immanuel. The elder/major son, Paul, was appointed the trustee. The object of the trust dated 2/07/1976, with which alone we are concerned herein, was to provide for the education of the two minor children. The wife of the assessee was named as the alternative trustee. The trust deed provided that from the income accrued each year, the a

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