Judgment

S. R. DAS CJI. : This is an appeal brought on a certificate granted on 19-9-1956, by the High Court of Bombay under S. 66A (2) of the Indian Income Tax Act (hereinafter referred to as "the said Act ) against its order dated 21-2-1956, in Income Tax Reference No. 32 of 1954 answering in the negative two questions of law refered to it under S. 66(1) of the said Act at the instance of the appellants.

2. The appellants are the trustees of a charity fund known as "The Charity Fund founded by Sir Sassoon David, Baronet of Bombay". The said Sir Sassoon David, Bart. and four other persons, who were holding certain securities of the value of Rs. 24,25,000 for the purpose of charity and had been applying the same for and towards charitable purposes, executed, on 8-6-1922, a Deed of Declaration of Trust declaring that the said trust fund would be held by them on trusts more specifically therein mentioned, Clause 13 of the said deed, on the true construction of which depends the answer to the referred questions, runs as follows:

"13. The Trust Fund shall be held by the Trustees upon the Trusts to apply the net income thereof after providing for all necessary expenses in relation to the m