Datta becoming one with Chidabara

Ajja performed Aradhana Saptaha at Shimoga in 1934. As his health was indifferent, his shishyas invited him to Shimoga, Bangalore, Nagara, Banavasi and other places. Ajja said, "Now this body is old, I shall reside with my eldest son" and came to Nulenur (on evening of navami of Margashira Shukla Paksha of Bhava Samvatsara) Appa received him and spent that night discoursing about Vedanta. The next day, Ajja was afflicted by cold and side pain. He would sit in the bed, Ramanna would hold a pillow to his back and Janakka would give him hot packs to soothe. On 19-12-34, a puppet show was held in front of Appa's home. It was attended by all the followers of Ajja.

At night, Ajja asked Ramanna to bring Panchanga (Hindu almanac) and read the Dinasuddhi of the next day. It was Margasira shukla pournima, Thursday, Mrigashira star and Datta Jayanthi. On that day, in the wee hours, Ajja, the great compassionate Brahmajnani attained Mahasamadhi. At that time Appa was sitting under the Audumbara planted by Sri Shankarabhagavan. Hearing the news he came home, pacified the crying shishyas and said, "How can He be dead? He is the life for all. Start singing Bhajans." He made someone bring a cup of milk, held it to the lips of Ajja and said, "Appa drink this." To the surprise of everyone Ajja drank the milk.

The villagers of Nulenur refused to allow the sacred body of Ajja (there were calling him Parameshwara) to any other place for the final rites. As Ajja assumed Atura (emergency) Sanyasa, He was buried in a Brindavan. Two lamps were lit there, and from the next day onwards Saptahas were celebrated continuously for about six months near the Samadhi. On Chitra pournima of Yuva nama samvatsara, Appa called his son Ramaswamy, sat him near Him and narrated the history of his lineage and his own life. He concluded saying "As on today I have not borrowed a paisa from anybody, nor is anyone due to pay me. You should follow my foot steps and live well". He drank a cup of milk and stood up . He untied his waist thread and threw it away. He took off his Yagnopaveetha, gave it to his son and said "This is the scared thread your grandfather made me wear”, He threw away his dress and said we came this way to this world and am approaching my Guru in this state. We shall not return. If you treat me as Guru, you may come".

The moon was shining brightly as Appa moved towards the samadhi chanting "OM" in a loud voice. He prostrated to samadhi. His disciples followed him and made him wear the dress. Appa said next day "This is Guru’s ashrama. Many people come here. This ashrama has no property. Therefore, you go out begging, chanting the name of Guru. Cook what you get and give the prasada to everyone."

It was a hot summer. Many shishyas had gathered at Nulenur. They were either teachers or shanubhogs, and generally poor. Appa told them to go for Bhajana Bhiksha (they go singing Bhajans in the streets, and would receive only what was voluntarily given) On one such day when all the followers had gone to Ramagiri (a neighboring Village), there was a severe thunderstorm. By midnight, Ramaswamy came with a cart and invited Appa to his house. Appa refused, and asked him to take Him to the Eshwara temple, instead. There was a black cobra there. It stayed with Appa till he lived there. Staying at Eshwara temple, Appa got the Dattashrama constructed. The Brindavan was constructed and a Dattatreya statue was installed in it. Shankara Bhagavan's Samadhi Mrithika (mud) was also placed inside Brindavan.

As soon as Appa became Guru, people of Basapura, many of whom were his playmates in childhood, invited him to their village. A procession was arranged. They gave seva to Appa. Milk and butter were supplied to the ashrama daily. The Dattashrama work was completed well before the first aradhana saptaha of Ajja.