CIT Vs. HYDERABAD RACE CLUB CHARITABLE TRUST

JUDGEMENT

(1.) AS per the directions of this court dated September 23, 1986, in I. T. C. Nos. 232, 273 and 296 of 1985, the following questions have been referred for opinion :

(2.) THE brief facts noticed are as under :

(3.) LEARNED counsel for the Revenue argued that the stewards of Hyderabad Race Club and the trustees of Hyderabad Race Club Charitable Trust are one and the same and that the assessee-trust is just a creation of the race club and, as such, it cannot conduct races without the paraphernalia provided by the race club. Thus, it is nothing but a "diversion by overriding title", i.e., the trust admitted transfer of the business of Hyderabad Race Club to itself. The power to conduct races is not specifically vested in the trust. There is no specific provision in the trust deed authorising the trust to conduct the races. Thus, it is the business of the trust and not the race club, as the trust operated the transaction by all means with the permission of the Government.