No Formal Trust Deed Required for Section 12AB Renewal: ITAT Mumbai Rules in Favour of Mount Mary's Basilica
Overview of the Dispute
The Income Tax Appellate Tribunal, Mumbai Bench, recently delivered a significant ruling in Basilica of Our Lady of the Mount Vs Exem. Ward 1(1), ITA No. 5551/MUM/2026, order dated 27/08/2026, concerning the renewal of registration under Section 12AB of the Income Tax Act, 1961. The central question before the Tribunal was whether the absence of a formal written trust deed or Memorandum of Association (MOA) could, by itself, serve as a valid and sufficient ground to reject a renewal application under Section 12AB.
The Tribunal answered this question in the negative, set aside the rejection order passed by the learned Commissioner of Income-tax (Exemptions) [CIT(E)], and directed grant of renewal registration. The ruling has considerable significance for religious and charitable institutions that were historically constituted without a formal written instrument but have been continuously recognised by statutory authorities.
Background of the Assessee
The assessee, Basilica of Our Lady of the Mount — widely recognised as Mount Mary or Mount Mary's Basilica — is a long-established religious and charitable institution located at Bandra, Mumbai. Founded in 1955, the institution operates under the ecclesiastical authority of the Archdiocese of Bombay and is governed in accordance with Canon Law. Its activities encompass religious services, medical assistance, educational support for the underprivileged, poverty relief, and various social welfare programmes.
Key facts relating to the assessee's legal standing are as follows:
- Registered as a public charitable trust under the Maharashtra Public Trusts Act, 1950 since 20/06/1955, following enquiry by the Charity Commissioner
- Enjoyed income-tax registration and exemption under the Income Tax Act, 1961 for several decades
- Granted registration under the new regime vide Form No. 10AC dated 23/09/2021, valid for Assessment Years 2022-23 to 2026-27
- Does not possess a separate written trust deed, MOA, or any analogous constitutive instrument
The Renewal Application and Rejection
The assessee filed an application in Form No. 10AB on 29/09/2025 seeking renewal of its registration under Section 12AB for Assessment Year 2026-27. During the course of proceedings, the CIT(E) issued notices dated 15/11/2025 and 14/03/2026, specifically requiring the assessee to produce a self-certified copy of the instrument of trust or MOA as contemplated under Rule 17A(2) of the Income-tax Rules, 1962.
In response, the assessee filed replies dated 27/11/2025 and 16/03/2026, candidly explaining that no separate trust deed or MOA existed, and that the institution was never constituted under any such written instrument. In lieu thereof, the assessee furnished:
- The original application filed before the Charity Commissioner under the Maharashtra Public Trusts Act, 1950
- The statutory certificate of registration issued by the Charity Commissioner dated 20/06/1955, granted after due statutory enquiry
- Its long-standing income-tax registration and exemption records spanning several decades
- Registration under the new regime vide Form No. 10AC
- Other documents evidencing the continued operation and existence of the institution
Notwithstanding these submissions, the CIT(E) rejected the application vide order dated 29/03/2026, on the primary ground that the assessee had failed to produce a formal instrument of trust or MOA despite specific requisition, and that such failure constituted non-compliance with the mandatory requirements under Section 12AB(1)(b) of the Income Tax Act, 1961 read with Rule 17A(2) of the Income-tax Rules, 1962. The CIT(E) further held that the documents submitted — including the Charity Commissioner's registration certificate — did not constitute documents evidencing the creation of the trust for the purposes of Rule 17A(2)(b). Aggrieved, the assessee preferred an appeal before the Tribunal.