- (1.) The appeal for asst. yr. 1991-92 has been filed by the Department, whereas the appeal for asst. yr. 1993-94 has been filed by the assessee. The issue is the same and, therefore, the two appeals are being disposed of by a common order.
(2.) For asst. yr. 1991-92, the assessee filed a return as an AOP/trust showing nil income. It was claimed that the income was exempt under s. 10(22) of the Act as an educational institution existing solely for educational purposes. An auditors report under s. 12A(b) of the Act was enclosed along with the income and expenditure account and balance sheet.
(3.) In the course of the hearing, a copy of memorandum of association was filed according to which the objects of the society were as under : "(i) To propagate and apply the science of yoga through the science of creative intelligence and its practical aspect the transcendental meditation (also abbreviated as TM) and TM-sidhi programme as propounded by his Holiness Maharishi Mahesh Yogi. (ii) To fulfill the goals of the world plan as formulated in 1972 by His Holiness Maharishi Mahesh Yogi : (a) To develop the full potential of the individual. (b) To realise the highest ideal of education. (c) To solve the problems of crime, drug abuse and all behaviour that brings unhappiness to the family of man. (d) To maximise the intelligent use of the environment. (e) To bring fulfillment to the economic and other aspiration of the individual and society. (f) To achieve the spiritual goals of mankind in this generation. (iii) To open training centres throughout India in accordance with the world plan formulated by His Holiness Maharishi Mahesh Yogi. (iv) To get the science of creative intelligence made a subject of teaching and examination in all the different colleges. (v) To take steps for the establishment in each university in India a separate faculty for the teaching of the science of creative intelligence. (vi) To buy, build, lease, rent or otherwise acquire centres for training and practice of the programmes developed to fulfill the objects of the society. (vii) To undertake and promote the training of various educational programmes and other skills. (viii) To undertake and promote any activity that will enable the participants of the societies programmes to be self-sufficient or otherwise raise the fund for the society including agriculture, horticulture, dairy farming, bee farming, cottage and small scale industries, khadi udyog, architectural and constructional activities, etc. with the sole motive bringing fulfillment to the goals of the society and without any profit motive. (ix) To accept, receive, give and take voluntary donations, grants, etc. from individuals, organisations and private and government bodies in India and abroad for the furtherance of the objects of the society." 3.1 After going through the objects, the AO took a view that the basic purpose of the society was to propagate the teachings of His Holiness Maharishi Mahesh Yogi, who was a religious Guru. He examined the other clauses also with reference to the following cases : 1. Rao Bahadur A. D. K. Dharmaraja Education Charity Trust v. CIT, 1990 182 ITR 80 2. CIT v. Radhaswami Satsangh Sabha, 1981 132 ITR 647 and 3. Addl. CIT v. . Aditanar Educational Institution, 1979 118 ITR 235 .;