( 1 ) PURSUANT to directions given by this Court in ITC No. 44/92 under Section 256 (2) of the Income-tax Act, 1961 (in short the act ), following question has been referred for 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 benefit of the sole beneficiary first son of Shri Rakesh mohan who was unborn at the time of creation of the Trust, is a valid trust?"

( 2 ) FACTUAL background in nutshell is as follows: assessee settled 60,000 equity shares of Mohan Meakin Breweries Ltd. of the face value of Rs. 5. 00 each for the benefit of first son of Shri Rakesh Mohan, son of late Col. V. R. Mohan. For this purpose a trust was created on 2. 5. 1974. Income-tax Officer (in short the ito ) was of the view that the trust was not valid and effective as there was no existence of any beneficiary. Income arising out of the aforesaid shares was included in the income of the assessee. Matter was carried in appeal before the Commissioner of Income-tax (Appeals) (in short the cit (A)