TMI Blog1994 (2) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... nciple of mutuality exists in the R.S.S. ? (ii) Whether, on the facts and in the circumstances of the case, the amount received from members and devotees can be taken to be Gurudakshina and held to be exempt ? We heard counsel for the Revenue as also counsel for the respondent-assessee. The facts of this case lie in a narrow campass. The assessments were made on the respondent-assessee in the status of an association of persons for the years 1967-68 to 1975-76. The assessments were of protective nature. The assessee's income is by way of receipt from members as Gurudakshina. It is also seen that Gurudakshina is also received from devotees. The Income-tax Officer held that Gurudakshina received by the assessee is taxable under the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Nag) of 1975-76 and I.T.As. Nos. 315 and 355 (Nag) of 1975-76 and same issues arose for decision therein. Therefore, in these cases, the Patna Bench of the Income-tax Appellate Tribunal referred to the decision rendered by the Bombay Bench of the Income-tax Appellate Tribunal in the aforesaid cases dated July 26, 1980, annexure C-1, and also placed reliance on the communication of the Central Board of Direct Taxes evidenced by No. 290/26/M.O./I.M. (Inv.), dated December 19, 1978, and concluded thus in para 9 of its order dated October 8, 1980: "Gurudakshina from Swayamsevaks on the ground of mutuality cannot be subjected to tax in the hands of the assessee....." Following the aforesaid conclusion of the Tribunal, Bombay Bench, the find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tna Bench of the Income-tax Appellate Tribunal referred to the decision of the Bombay Bench and the findings and conclusions arrived at therein. The decision of the Income-tax Appellate Tribunal, Bombay Bench, was also referred to by the Appellate Assistant Commissioner in the present cases. The Bombay Bench of the Tribunal had occasion to deal with in depth and consider the constitution of the organisation, affidavits filed by the parties and also the view expressed by the Central Board of Direct Taxes in their letter dated December 19, 1978, and found that the Gurudakshina received by the respondent from its members is exempt from tax on the ground of mutuality. It was argued that in so adopting the said conclusion of the Bombay Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground of mutuality. The said letter affords administrative relief to the assessee. The existence of such a communication of the Central Board of Direct Taxes, its contents, and reliance placed thereon were never disputed before the Appellate Tribunal or before us. The said communication of the Central Board of Direct Taxes is quoted at pages 89-90 of the paper book in T. C. No. 42 of 1982. In the light of the definite stand taken by the Central Board of Direct Taxes in its communication dated December 19, 1978, Gurudakshina received by the respondent assessee from its members is exempt from tax on the principle of mutuality. The relief so afforded should be given effect to. The communication of the Central Board of Direct Taxes was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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