RAMAKRISHNA SEVA ASHRAMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) 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. 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-

(3.) 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.