1993 (6) TMI 246

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....vati,J.-The Tribunal, Ahmedabad, has referred the following two questions to this Court for its opinion under s. 256(1) of the IT Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, the assessee trust was entitled to a deduction of the income-tax paid in computing its income ? (2) Whether, on the facts and in the circumstances of the case, the income of the assessee ....

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....void payment of tax. The assessee trust was entitled to switch over to the cash method of accounting in view of the peculiar circumstances in which the trust was placed. This Court has also held that the income derived from trust property must be determined on commercial principles and, in doing so, all outgoings, including outgoings by way of income-tax paid by the assessee trust, must be deducte....