ITAT Mumbai Allows 12AB Renewal for Church Formed Without a Trust Deed

Overview

The Mumbai Bench of the Income Tax Appellate Tribunal in St. Peters Church Vs CIT (ITAT Mumbai) has clarified that a long-standing public charitable institution cannot be refused renewal of registration under Section 12AB merely because it does not possess a formal trust deed or Memorandum of Association, where such instrument never existed.

The Tribunal set aside the order of the Commissioner of Income Tax (Exemptions), Mumbai [“CIT(E)”] dated 29/03/2026, by which the Church’s Form No. 10AB application for renewal of registration was rejected. The ITAT directed the CIT(E) to grant renewal of registration under Section 12AB in accordance with law.

The ruling turns crucially on the interpretation of Rule 17A(2) of the Income Tax Rules, 1962, which draws a clear distinction between:

  • Institutions created or established under an instrument, and
  • Institutions created or established otherwise than under an instrument.

The Tribunal held that insisting on a trust deed in every case would effectively nullify Rule 17A(2)(b), which expressly caters to entities not founded through a formal written instrument.

Factual Background

Nature of the assessee and application filed

  • The assessee, St. Peters Church, is a religious and charitable institution registered as a public charitable trust under the Maharashtra Public Trusts Act, 1950.
  • The assessee filed Form No. 10AB on 25/09/2025 under clause (ii) of Section 12A(1)(ac) seeking renewal of its regular registration under Section 12AB for Assessment Year 2026-27.
  • The assessee categorically explained that:
    • It had not been constituted under a separate written trust deed or Memorandum of Association.
    • It is governed by Canon Law.
    • It has long-standing registration as a public charitable trust under the Maharashtra Public Trusts Act, 1950.

To support its application, the assessee placed on record:

  • Application papers filed before the Charity Commissioner, and
  • Certificate of registration issued by the Charity Commissioner under the Maharashtra Public Trusts Act, 1950.

Proceedings before the CIT(E)

Upon examining the Form 10AB application, the CIT(E):

  1. Called for documents under Rule 17A(2)
    The assessee was asked to furnish documents prescribed under Rule 17A(2) to evidence its creation/establishment and its governing framework.

  2. Documents furnished by the assessee
    In response, the assessee reiterated:

    • That there was no formal written trust deed / MOA constituting it.
    • That it is subject to Canon Law.
    • That it has been recognized as a public charitable trust under the Maharashtra Public Trusts Act, 1950.

    It submitted:

    • The application filed before the Charity Commissioner, and
    • The registration certificate issued by the Charity Commissioner.