The Income tax Officer did number accept the assessees claim of exemption and proceeded to hold that the donations and companytributions had been received voluntarily and had been limited to religious use but there was numberobligation to do so.
These three Satgurus have been regarded as the real exponents of the creed.
For the first time claim for refund in the years 1964 65, 1965 66 and 1966 67 was number allowed and the assessee was treated as an association of persons and taxed subsequentiy for the assessment years 1966 67, 1967 68 and 1968 69 and 196970 assessments were also company pleted.
The Commissioner took the view that the offerings though made to the Satgurus were number used for their personal benefit and held that even though numberformal trust had been created by the donors in respect of offer ings, the guru impressed the offerings with trust character at the time of receipt, and treated the offerings as held in trust.
The Appellate Assistant Commissioner companyfirmed the assessments.
Disputes arose as to the management of the shrines and the administration of the properties which had vested in the trustees under the Trust Deed of 1904.
A trust deed was executed by some members of the Central Council in October, 1904 A set of bye laws were also framed.
Out of donations and offerings made to the Satgurus, large funds were built up and properties were acquired over the years.
On 8.12.1945 the Commis sioner directed deletion thereof.
Assessee then filed applications under section 66 2 of the Income tax Act of 1922 for reference.
The assessee appealed but the appellate authority upheld the assessments for the years referred to above.
From the Judgment and Order dated 7.7.1980 of the Alla habad High Court in I.T.R. No.
The Income Tax Officer relied upon the observations of the Privy Council and company pleted assessments for two years being 1937 38 and 1938 39 treating the then Satguru, Sri Madho Prasad Sinha as the assessee.
an application under section 35 of the Act was later filed for ratification by pointing out that offerings received by the Satgurus companysisted of interest income, property income, and income derived from sale of books and photographs etc.
Nothing substantial happened until the assessment year 1963 64.
The third sant Satguru was Pandit Brahma Shanker Misra 1898 1907 and was widely known as Maharaj Sahib.
His pension as also the income from the institution were tagged together for assessment.
On the death of third Satguru which took place in Octo ber 1907, the oread split into two and came to be known as Swami Bagh Sect and the Dayal Bagh Satsangis respectively.
The assessee is the Radhasoami Satsang, Agra.
The ambit and purport of the question would number be properly appreciated unless the background is indicated.
For the year 1939 40, the income tax Officer did number grant exemption under section 4 3 1 of the Act but the appeal challenging the assessment was accepted by the Appel late Assistant Commissioner in September, 1947 upholding the assessees claim of exemption.
C. Manchanda, B.B.Ahuja, Manoj Arora and Ms. A. Subha shini N.P. for the Respondent.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
and the same should also be excluded.
During this period refund applications of the Satsang were accepted by the department on the basis that the income was exempt and as tax had been deducted at source the same was refundable.
The following question had been referred by the Tribunal to the High Court Whether on the facts and in the circumstances of the case Tribunal is justified in holding that the income derived by the Radha Swami Satsang, a religious institution, is entitled to exemption under sections 11 and 12 of the income Tax Act, 1961.
In June, 1904 the companystitution and bye laws of the Central Council of Radhasoami Satsang were drawn up in a formal way and a body by the name Radhasoami Satsang Trust was set up.
10574 10583 of 1983.
The Judgment of the Court was delivered by RANGANATH MISRA, CJ.
Radhasoami Satsang, an assessee under the Income Tax Act in these appeals by special leave assails the decision of the Allahabad High Court on refer ence under Section 256 of the Income tax Act.
The tenets of this faith, inter alia, accept the position that God is represented on earth by a human being who is called the Sant Satguru.
Gourishanker, B.V. Desai, S.K. Aggarwal and Ms. Vinita Gharpade for the Appellants.
He was a retired Assistant Accounts Officer and was earning a pension.
This sect was founded by Swami Shiv Dayal Singh in 1861.
948 of 1975.
The asses see then appealed to the Tribunal.
During the time of the third Satguru, in 1902, the members of the creed at a largely attended companyvention established a Central Council and the right, title and interest of all the properties movable and immovable which had by then been companylected were vested in the Council under the directions of Maharaj Sahib.
The first of such gurus .was the thunder himself and he was popularly known as Soamiji Madharaj The second Satguru 1889 1898 was Rai Bahadur Salig Ram and he was known as Bazoor Maharaj.
