TaxTMI 
TaxTMI 
1980 (10) TMI 134
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....d for the withdrawal of notices. The petition was rejected by the ITO and he completed the assessments under s. 144 of the Act. The ITO noticed that the assessee's income is by way of receipt from members and devotees as Guru-Dakshina. He observed that since the names and addresses of the donors had not been maintained and furnished, the income received becomes taxable under the provisions of the IT Act. He, accordingly, computed the income of the assessee at Rs. 48,000, Rs. 71,000 Rs. 50,000, Rs. 20,000, Rs. 25,000, Rs. 20,000, Rs. 15,000, Rs. 20,000, Rs. 15,000 respectively for the assessment years under consideration. 3. The notice under s. 139(2) for the asst. yr. 1975-76 was served on the assessee on 28th Nov., 1975. The last opport....
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....d in the case of organization i.e., RSS by the ITO who holds jurisdiction over its head office. Further, the Guru-Dakshina receipts have to be considered as receipts from the members of the organization because the ITO does not say anything in the order that any part of the receipts were from non-members. Guru-Dakshina receipts from the members of the organization are exempt on the ground of mutuality. This position is reinforced by the Board's instructions communicated under their No. 290/26/M.O./I.M.(Inv.). dt. 19th Dec., 1978." He, therefore, cancelled the assessments made by the ITO. The Department is in appeal. 5. Shri Singh, the Deptl. Rep., very strongly supported the orders of the ITO and urged that the assessee did not file t....
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....es raised which he made above that his submissions can be summarised as under: (1) The incomes in the hands of the assessee which can be subjected to tax can be only rental and interest income of the assessee at Nagpur i.e., head-quarters alone. (2) No amount received by the assessee from Swayamsevaks and non-Swayamsevaks as Guru-Dakshina or contributions can be subjected to tax in the hands of the assessee. (3) All the Shakhas at different places are autonomous units and none of their incomes either in form of contribution received by the head-quarters nor the net credit balance of receipts over expenditure as held by the AAC could be subjected to tax in hands of the assessee. The assessee which is considered as body of individ....
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....ependent unit which could make them autonomous. In case the same are autonomous, according to him, where is the necessity of having any control from head-quarters at Nagpur. Art. 8 of the constitution gives the organisation distribution of Sangh in respect of whole in India and power of Sarsangh Chalak are uncontrolled and unbridled. Succession of Sarsangh Chalak is not by election and KKM is not a elected body. He read out the functions given in cl. (c) of Art. 14 of the constitution, according to which, the entire control of finance is centralised in KKM. Nobody knows how the elections are conducted of the said organization and inspite of the fact that the accounts of each Shakhas are required to be completed and audited, the same are not....
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....thout the knowledge of the RSS, Nagpur. According to him, receipt, accrual and enjoyment of income is quite different from control. He cited an example that if the Reserve Bank of India which control large number of institutions and banks, would it make such banks and institutions as the branches of the Reserve Bank of India. He said that the control is only for common object and member of every Shakha is not a members of RSS Nagpur, the assessee, and as such the status of body of individuals when taken only income in respect of interest and property and that too in respect of Nagpur should be subjected to tax and no income to be clubbed up in respect of any Shakha either out of contributions or out of Kendraunsh." 7. The finding of the ....
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....pur is body of individuals which no doubt is concerned with Swayamsevaks who are members of the said body at Nagpur, but cannot be considered as body of all the Swayamsevaks all over India forming different Shakhas at different places with different heads and such Shakhas are started without even the knowledge of the assessee-RSS at Nagpur and the closure of which is not even required to be intimated to the assessee-RSS. In no case there can be body of individuals. Even on this basis the inclusion of net income of other Shakhas or Kendraunsh cannot be subjected to tax in the hands of the assessee-RSS at Nagpur. In short our findings on different issues raised by the assessee in its appeal are summarised as under: (1) The assessee Rashtri....