Commissioner Of Income-Tax vs Trustees Of H.E.H. Nizam'S ...

The Supreme Court upheld the decision of the Andhra Pradesh High Court regarding the allowance of 7.5% of the net income of a trust as reasonable expenditure for administration under Sections 57(i) and 19(i) of the Income-tax Act, 1961. The Court noted that the Revenue did not appeal against the earlier judgment in CIT v. Trustees of H.E.H. The Nizam's Miscellaneous Trust, which established this principle. Consequently, the appeals filed by the Revenue were dismissed, affirming the High Court's ruling.