Sri Ramakrishna Seva Ashrama v. Commissioner Of Income-Tax

The Judgment of the Court was delivered by*

S.R Nayak, J.:— The petitioner, being aggrieved by the action of the respondent-Commissioner of Income-tax (for short “the CIT”), Guntur, refusing to grant exemption under section 80G of the Income-tax Act, 1961 (for short “the Act”), has filed this writ petition seeking a direction to the respondent to grant renewal of exemption under section 80G of the Act with effect from January 1, 1991.

2. The petitioner-society is registered under the provisions of the Societies Registration Act, 1860, with Reg. No. 71/77 of 1977. According to the petitioner, it is essentially a charitable institution, the avowed objects being charitable in nature—to diffuse scientific and technical knowledge on vedanta and also for the promotion of science, literature, fine arts in charitable institutions, in educational, technical, social and scientific fields, galleries of paintings and other works of art, collection of natural and philosophical inventions, instruments of designs, etc. It is also stated that the petitioner-society got exemption under section 80G of the Act initially from March 15, 1980, and that was renewed from time to time up to December 31, 1990.

3. When the matter stood thus, according to the petitioner, it submitted a representation/application dated September 28, 1990, seeking renewal of exemption under section 80G of the Act. The Commissioner of Income-tax, it appears from the endorsement issued by the Income-tax Officer (Head Quarters), Guntur, made an order dated November 5, 1991.December 27, 1991, rejecting the application of the petitioner on the ground—“the objects are of a religious nature and are hit by Explanation 3 to section 80G”. After the receipt of the above endorsement the petitioner seems to have made another application dated January 10, 1992, seeking renewal of exemption under section 80G of the Act. That application was also rejected by the Commissioner of Income-tax, Guntur, and that information was communicated to the petitioner by the Income-tax Officer by his letter dated January 20, 1992. It reads—

“The Commissioner's comments on the above subject are as under:

Preaching the ideals of Hinduism and of other religions is, to my mind, a religious purpose. So I am afraid, I do not have to change the stand.”

4. It is trite to state that when the Commissioner grants or refuses exemption under section 80G of the Act, he acts as a quasi-judicial statutory authority. Therefore, it is expected that the conclusions reached and the findings recorded by him are supported by reasons. Otherwise, in the event of the challenge to such Orders made by him under section 80G of the Act, the reviewing court will not be in a position to know what factors or reasons weighed with the Commissioner in arriving at a particular conclusion and recording a finding.

5. The petitioner appended a copy of the memorandum of association of the petitioner-society. Paragraph III deals with aims and objects. They read—

(a) to diffuse scientific and technical knowledge on vedanta and also for the promotion of science, literature, fine arts, charitable institutions, educational, technical, social and in scientific fields, galleries of painting and other works of art, collection of natural and philosophical inventions, instruments of designs, etc.;

(b) to preach and propagate the ideas and ideals of Hinduism and other great religions of the world with special reference to the teachings of Sri Ramakrishna Parama Hamsa;

(c) to regard all the great religions of the world as the path ways to reach that ultimate reality and to cultivate the broad outlook as propounded by Sri Ramakrishna Parama Hamsa, Swami Vivekananda and other great sages;

(d) to establish an Ashrama with Sri Ramakrishna Parama Hamsa as the ideal in which the aspirants will gather for seeking knowledge of the reality, cultivating devotion to God and practising spiritual sadhanas and to train themselves in living a “life of spiritual commune.”

(e) to awaken spiritual consciousness, foster and develop sense of spiritual discipline among its members and to create a centre of devotion to all the aspirants;

(f) to carry on spiritual and cultural work and conduct meditation, prayer and worship and spiritual sadhana to purify and develop the hearts and minds and set the aspirants on the path of spiritual progress;

(g) to impart and promote the study of vedanta and its main principles, scriptures, comparative religions and also philosophy of different cultures and civilizations, ancient and modern, and such other literature which will have a direct bearing upon the spiritual, moral and intellectual development of the members and the general public;

(h) to conduct social work and higher types of music, etc.;

(i) to conduct celebrations connected with the lives of great spiritual leaders and important religious festivals;

(j) to conduct excursions and pilgrimages to places of cultural and religious interest and also of historical importance;

(k) to spread knowledge of the lives, ideals and the teachings of Sri Ramakrishna Parama Hamsa and his great disciples among the people and to follow, as far as possible, the principles and conventions observed by Sri Ramakrishna Parama Hamsa Mission and Math, Belur, with a view to make this Ashrama a recognised branch of Sri Ramakrishna Mission and Math;

(l) to foster inter-religious understanding and fellowship;

(m) to carry on humanitarian and charitable activities in the nature of service to the needy and suffering humanity;

(n) to establish, maintain carry on and to assist dispensaries, orphanages, educational institutions, libraries and reading rooms, relief works and other philanthropic and charitable works and institutions of a like nature for rendering service to, humanity;

(o) to promote Sanskrit education, adult education and education among the masses and also to promote the study and research in arts, science, industries and commence;

(p) to build up a permanent body of workers for rendering services in all emergencies;

(q) to start or maintain any other institution and carry on any other activity of a similar nature for rendering service and to promote the wellbeing of the people in general and to co-operate with other institutions in the various objectives of the Ashrama;

(r) to build up financial and other material resources for the promotion of the different objectives, of the Ashrama;

(s) to print, publish, purchase and sell or distribute free of cost or otherwise journals, books, booklets, leaflets and literature of a like nature that the Ashrama may think desirable for the promotion of its objectives;

(t) to inspire and train our youth in the spiritual culture of our country and to engage them in the Service of humanity with an understanding that “service of man is service of God”;

(u) to open branch centres of the Ashrama where the Ashrama thinks it is capable of carrying on the work in pursuance of the objectives of the Ashrama under this constitution;

(v) to receive subscriptions, donations and gifts of cash, movables and immovables and other properties from members of the Ashrama and the general public;

(w) to acquire or take on lease or gratis and construct or alter and maintain any movable or immovable properties which the Ashrama deems necessary and thinks it is capable of holding and maintaining the same; and

(x) to carry on any other work which the Ashrama deems necessary and capable of being conveniently carried on in connection with the said object and also calculated directly or indirectly to promote the above aims and objects.”

6. Although the aims and objects enumerated above do include some purely religious activities, at the same time, they also include many temporal and secular activities such as, to diffuse scientific and technical knowledge on vedanta and also for promotion of science, literature, fine arts of charitable institutions in educational, technical, social and scientific fields, galleries of paintings and other works of arts, collection of natural and philosophical inventions, instruments of designs, etc., to carry on spiritual and cultural work, study of philosophies of different cultures and civilisations, ancient and modern, and such other literatures, courses designed to improve and aid intellectual development of the members of the society in particular and that of the public in general, to conduct social work and higher types of music. It also includes many other secular activities and it is not necessary for us to refer to all those secular activities enumerated in paragraph III of the memorandum of association, because it is not for us at this stage to appreciate the evidence placed before the Commissioner of Income-tax and arrive at a finding. The two opinions recorded by the Commissioner of Income-tax and communicated to the petitioner through the Income-tax Officer, in our considered opinion, do not satisfy the requirements of a reasoned decision or a speaking order, particularly in the context of the aims and objects of the petitioner-society. The Commissioner of Income-tax has not at all referred to or considered the aims and objects of the society.

7. In that view of the matter, we think that it is just and appropriate to direct the Commissioner of Income-tax, Vijayawada, to apply his mind to the material placed before him and take, a decision in accordance with law by a reasoned decision.

8. In the result and for the foregoing reasons, we allow the writ petition. The impugned communications dated November 5, 1991.December 27, 1991, and January 20, 1992, are set aside and the Commissioner of Income-tax, Vijayawada, is directed to consider the applications of the petitioner made under section 80G of the Act and dispose of the same by a reasoned and speaking order. There shall be no order as to costs. The above direction shall be carried out within a period of three (3) months from the date of receipt of a copy of the order. No costs.

9. That rule nisi has been made absolute as above.