JUDGMENT:

C.V. RAMULU, J.:— As per the directions of this Court dated 23-9-1986 in I.T.C. Nos. 232, 273 and 296 of 1985 the following questions have been referred for opinion.

“(1) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the assessee is an institution which satisfied the conditions of Section 2(15) read with Section 11?

(2) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the assessee derived income from property held in trust and even if it is not to be treated as property held under trust it can only be treated as property held under trust as voluntary contribution given by Hyderabad Race Club?

(3) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the activity carried on by the assessee did not constitute a business and even if it were business it was not such business as would be hit by Section 13(1)(bb) of the Act?”

2. The brief facts noticed are as under:

3. The Hyderabad Race Club had decided to create a separate public charitable trust in the name and style “Hyderabad Race Club Charitable