TMI Blog1987 (4) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... for educational purposes and not for purposes of profit. 3. The assessee S.R.M. Foundation ofIndia, T-714, New Friends Colony, New Delhi-65 has been assessed in the status of an AOP (Association of Persons). The Spiritual Regeneration Movement Foundation of India is a society registered under the Societies Registration Act. It was founded in 1963 by Maharishi Mahesh Yogi. It is registered under section 12A of the Income-tax Act, 1961 with the Commissioner of Income-tax,Lucknowand a certificate under section 80G was also issued in its favour. The assessee foundation claimed exemption of its income under section 10(22) which provides for the exemption of "the income of a university or other educational institution existing solely for educat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the view that they satisfied the tests laid down by the Supreme Court in the case of Sole Trustees, Loka Shikshana Trust and that as a Society running an educational institution, it qualified as "other educational institution" and so he directed the assessing officer to grant to the assessee the exemption claimed under section 10(22). Accordingly he did not deal with the assessee's alternative claim of exemption under section 11. 5. That is how the department is aggrieved and has come in appeals before us. Shri D. K. Sharma, the learned Departmental Representative, strongly relied upon the orders of the assessing officer as also on the decision of the Supreme Court in the case of Sole Trustees, Loka Shikshana Trust. He argued that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1978] (iii) CIT v. Sindhu Vidya Mandal Trust [1983] 142 ITR 633 (Guj.); (iv) ITO v. Devanga Educational Association [1984] 8 ITD 490 (Mad.); and (v) Trustees of the Tagore Educational Society v. Seventh ITO [1984] 10 ITD 279 (Bom.). He referred to the implications of T.M. as discussed by V. R. Krishna Iyer of the Supreme Court in the case of Hiralal Mallick v. State ofBihar AIR1977 SC 2236 at 2243. He also referred to Chamber's Twentieth Century Dictionary, Iyer's Law Lexicon. Supreme Court's decision in the case of Sole Trustees, Loka Shikshana Trust and the decision of the Hon'ble Calcutta High Court in the case of Birla Vidhya Vihar [1982] 136 ITR 445 as to the meaning of education. In this connection he also referred to the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e therefore, only to fall back on the expression "or other educational institution". There is no requirement prescribed under section 10(22) that the institution should be recognised by a University or State ofCentral Government. Thus the assessing officer's insistence of any such recognition was not justified. That a Society like the assessee foundation can qualify for being called an institution is also clear from the decision of the High Court of Justice (King's Bench Division) in the case of Royal Choral Society ; of the Madras High Court in the case of Aditanar Educational Institution and of the Hon'ble Allahabad High Court in the case of Katra Education Society where the assessee was a Society. It is not necessary that an institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) To train and educate people in all walks of life and in all countries to go daily into Deep Meditation for a few minutes, and thereby to develop their spiritual, mental, and other faculties and thus to become conscientiously useful citizens of human world, rediating love, peace and happiness all around. (iii) To conduct research in the field of physical and mental health and social behaviour. (iv) To improve the physical and mental health and social behaviour of the people. (v) To advance the study of, and propagate, Indian Culture all over the world. (vi) Holding of lectures for the purpose of instructing the people all over the world in the Knowledge and practice of Indian Philosophy, and theIndian Wayof Life. (vii) To conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also gives the names of the various Indian and foreign institution and universities where TM has been adopted as a part of the curriculum. The systematic instruction in TM is initially imparted to the trainers (a copy of their sample biodata has been placed by the assessee on the paper book) and then the trainers (qualified instructors) impart instruction to the trainees. We are of the view that the text of "Systematic Schooling" laid down by the Supreme Court in the case of Sole Trustee, Loka Shikshana Trust, was satisfied by the assessee if we look at its functions and activities. The facts in the case of Rajneesh Foundation were entirely different. There the Trust Deed envisaged embarking on a number of activities not related to its prim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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