Allowing the appeal of the assessee the Court held that where assessee trust was running a dental college and was also running and managing hostel for residence of students admitted in said college, since, activity of running hostel was not a separate business activity, surplus income from hostel fee could not be treated as profit and gains of a separate business or commercial activity of trust, hence denial of  exemption is held to be not justified .   ( AY. 2010 -11 )