COMMISSIONER OF INCOME TAX Vs. SARBAMANGALA DEVI

JUDGEMENT

(1.) A consolidated statement of the case has been submitted by the Income -tax Appellate Tribunal, Patna Bench 'A', Patna (hereinafter referred to as "the Tribunal"), under S. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act"), referring the following common question of law for the opinion of this Court :

(2.) THE relevant facts of the case can be culled from the statement of the case as well as from the assessment orders of the ITO and the orders of the AAC. Smt. Sarbamangala Devi is the widow, and Dr. P.R.Chakravarty is the son of late Guru Anukul Chandra Thakur. These two assessees are mother and son. Smt. Sarbamangal Devi is an employee of satsang and gets salaries therefrom and she looks after the female section of the organisation in consideration of which she is being paid salaries by her employer. This will be evident from the assessment orders of Smt. Sarbamangala Devi. In the asst. yrs. 1963 -64, 1964 -65, 1965 -66 and 1966 -67 the assessee, Smt. Sarbamangala Devi, filed returns in pursuance of the notice served under S. 148 of the Act. The assessee received the following amounts as pranamis :

(3.) DR . P.R.Chakravarty is also an employee of the satsang and gets his salaries therefrom. He is a qualified doctor and looks after the hospital of the satsang, as will be evident from para.3 at page 44. of the paper book. He also received the following amounts as pranamis : As stated above, the assessee is a doctor serving in the hospital of the satsang. Both the aforesaid assessees showed the amounts of pranamis in Part IV of the return and it was stated that these amounts of pranamis represent gifts received by the assessees from different disciples and followers of satsang. A list was also furnished showing the names of the alleged donors. It was also contended that the receipts are from different persons and are of varying amounts and these receipts have been given by the donors out of reverence, love and affection to the assessees and so they should be treated as casual and non - recurring and hence exempt under s. 10(3) of the Act. The ITO found that the question of assessability of similar receipts came up for consideration by the AAC in appeals relating to the asst. yrs. 1967 -68 to 1971 -72, and it was held by the AAC that such receipts were qualified for exemption under S. 10(3) because there is no continuity of receipt and they are of casual and non - recurring nature. The AAC also took the view that the assessees are not preachers of satsang cult and, therefore, these receipts did not arise from the exercise of a profession by the assessees. The ITO held that it is a fact that the receipts are from different persons and the amounts are varying in each case, as submitted on behalf of the assessees. The ITO also admitted that it is also a fact that the assessee have got no legal rights over the sums. The attention of the ITO was also drawn to the aforesaid decision of the AAC but the ITO held as follows :