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TMI Blog1985 (7) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ions which is the main receipt of the firm. These Dibbi collections are divided among the partners according to their profit-sharing ratio after meeting the expenditure. 3. There was some litigation in connection with the properties and the trusteeship of this temple. In the course of this litigation which came up before the subordinate Judge at Eluru in 1925 and was numbered as O.S.No. 1 of 1925 and it ended by a decision of the Supreme Court which was given as we understand, some time in 1980. In the course of the litigation proceedings, a scheme was drawn up in 1950 for the administration of the temple and for the pooja of the deities. The obligations of the Archakas are spelt out in this scheme. As per this scheme, an executive office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (11) and clause (12) who also have to be qualified to be Archakas. It appears that the partners of the assessee-firm found that sufficient number of qualified Archakas were not forthcoming. They, therefore, started a school on 4-8-1979. In this school, they taught Vighanasa Agama Sastra to the students which will eventually qualify them to be considered as fit for appointment as Archakas. In the first year, which was the assessment year 1980-81, the expenditure in running the school was Rs. 32,590. 5. By the time the second year started, it appears the Government took some interest and paid a stipend of Rs. 75 per month per student and met the salaries of the teachers and other expenses. The result was, for the second year the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents (i) by way of deputies at the time of festival occasions and other occasions and (ii) at the time when the women Archakas have their turn for doing the pooja. We may mention here that although the women Archakas are also entitled by the hereditary to have a right on the collections of Dibbi, they are not allowed to do the pooja themselves. They have a right of deputing some other Archakas to take their turn on their behalf. This requires deputies. There is also the obligation of continuing the profession and requirement of replacement of partners who would be eventually retiring. Because of this, it was necessary to have qualified Archakas. Therefore, the running of the school was absolutely essential for the conducting of the professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nwards, what the assessee has done is only to provide food for the students. This is in the nature of a charitable expenditure. It could also be construed as entertainment expenditure in view of the amended provisions. He then submitted that the Supreme Court did not deal with any hereditary rights and it had no relevance at all to the point at issue. 10. We have considered the submissions. As per the scheme drawn up, there is an obligation on the Archakas to conduct the pooja and the ceremonies in the temple. This obligation on the Archakas has now befallen on the assessee-firm since the Archakas are the partners here and the firm was formed only for this purpose. All the expenses incurred by the firm in discharge of the obligation under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dergo the rigors of training in this Agama. It is only those who were trained in this manner would be acceptable according to the scheme to work as deputies. Therefore, the case is really akin to the Supreme Court's decision in Royal Calcutta Turf Club's case. In that case, the Supreme Court found that the assessee cannot conduct races unless there were qualified jockeys. Therefore, they conducted an institution for training up jockeys. In this case also, it is essentially for the partners to have trained deputies and for this purpose, they are running the institution. 12. Viewed from the long-term angle also, it is essential that the assessee should bring up qualified Archakas to take the place of the partners eventually. As we have poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsider the submissions of Shri Santhanam. He first had submitted that the firm itself is not valid and the partners are really employees of the temple. We are unable to accept this submission. The executive officer has not appointed them. He could not instruct them as to how to conduct the poojas. His argument is based on a provision in clause (10) which states that the executive officer has the power to fine, suspend, remove or dismiss the servants for neglect of duties or disobedience, etc. He had also the right to take disciplinary action. Although the right to take disciplinary action is a test to find out whether there is employer-employee relationship, that by itself is not conclusive. The tests to be applied in such cases have been g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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