C.S.P.Singh, J. - (1.) The Income-tax Appellate Tribunal has referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the income derived by the Radhaswami Satsang, a religious institution, is entitled to exemption under Sections 11 and 12 of the Income-tax Act, 1961 ?"
(2.) The assessee is the Radhaswami Satsang, Agra. The faith, Radhaswami was founded by one Sri Swami Shiv; Dayal Singh in 1869. According to the tenets of this faith the deity is represented on this earth by a human being who is called the Sant Satguru. The first Sant Satguru was Sri Shiv Dayal Singh, popularly known as " Swami Ji Maharaj". The second Sant Satguru (1878-1898) was Rai Bahadur Salig Ramanand ; he is popularly known as "Hazoor Maharaj ". The third Sant Satguru (1898-1907) was Pandit Brahma Sankar Misra, popularly known as "Maharaj Sahib". These first three gurus are regarded as the true exponents of the creed by all the followers of this faith. The Satsang which was started in the said manner grew in numbers and from the offerings made by the devotees to the Sant Satguru for the time being, the funds accumulated, which were partly utilised for the construction and maintenance of the shrines of the deceased Sant Satgurus and for places of worship and residence of this community and partly for the other objects of this faith. During the time of the third Sant Satguru somewhere in 1902, the members of the faith met together and established a central administrative council defining its constitution and bye-laws and vesting all the movable and immovable properties therein. All this was done under the direction of Maharaj Sahib, the third Sant Satguru. A document declaring the constitutional powers of the central council seems to have come into being in June, 1904. The said body was designated as the Radhaswami Trust. Some of its material provisions were as follows : "1, The constitutional powers of the central council Radhaswami Satsang which was established in the year 1902, by a majority of votes of the members of the Radhaswami Faith are as follows: (a) To regulate the conduct of business pertaining to the Radhaswami Satsang and its branches and of the followers of the Radhaswami religion. (b) To collect, preserve and administer the properties movable and immovable that have been or may hereafter be dedicated to Radhaswami Dayal or that may be acquired for or presented to the Radhaswami Satsang for the furtherance of the objects of the Satsang. (c) To do the above and all such other things as are incidental or conducive to the attainment of the above objects in accordance with the direction of the Sant Satguru for the time being, if any who is recognised as the representative of the supreme creater, Radhaswami Dayal, and whose mandates shall be paramount and absolute in all the matters referred to above. (d) To fill up vacancies among its members consequent upon death or resignation or any other cause, also to add to or to reduce its number or remove any member for sufficient reasons, provided that at no time the number of members be less than ten. 9. All property of Radhaswami Satsang and its branches both movable and immovable which exists at present or may hereafter be presented to Radhaswami Dayal or be otherwise acquired, will for the maintenance and advancement of the objects of the Satsang, be vested in a body of trustees designated the Radhaswami Trust. Note.--The term 'movable property' used in the bye-law includes jewellery, furniture, dairies, carpets, utensils, etc., which belong to the Satsang. 22. The Radhaswami Trust shall prescribe rules for the proper care and custody of the movable and immovable property belonging to the Satsang and its branches and for the proper maintenance of accounts. 25. The trust shall be revocable at the discretion of the council and the trustees shall hold their office at its pleasure. 27. All immovable property as soon as acquired by Satsang, either as a present or offering, shall be conveyed in the name of the "Radhaswami Trust."
(3.) A trust deed was executed by certain members of the central council some time in October, 1904. The objects of the trust were ; "The trustees named above or those that may be appointed hereafter to succeed them, all of whom will hereafter be called trustees, shall collect, preserve, administer, and if necessary, alienate the properties, movable or immovable, that have been or may hereafter be dedicated to the supreme being, Radhaswami Dayal, or that may be acquired for or presented to the Radhaswami Satsang and its branches, in accordance with such directions as may, from time to time, be issued in this behalf by the said council or the Sant Satguru for the time being, if any, who is recognised as the representative of the supreme being, Radhaswami Dayal, and as such is the sole master of all movable and immovable properties of the aforesaid Satsang, provided that Samadhis and places of public worship of the Radhaswami Satsang shall at no time be alienated. By clause relating to bye-laws it was provided as follows : "1. Irrespective of what is prescribed by the following rules, all mandates of the Sant Satguru of the time regarding the disposal of the movable and immovable properties of the Satsang and its branches or other matters connected with the trust, shall be carried out by the trustees. 2. The trust shall be revocable at the direction of the council and the trustees shall hold their office at its pleasure. 3. All immovable properties, as soon as acquired by the aforesaid Satsang either as presents or offerings or by purchase, or otherwise, shall be forthwith conveyed in the name of the trustees.";