ROMAN CATHOLIC SCHOOL OF ST TERESAS,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS, MUMBAI

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ITA 5787/MUM/2026Status: DisposedITAT Mumbai05 August 202611 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the absence of a formal trust deed alone cannot be a ground for rejecting renewal if the institution can establish its creation, charitable objects, and genuine activities through other statutory records and long-standing recognition. The CIT(E)'s interpretation of Rule 17A(2)(b) was considered too restrictive.

What were the facts?

The assessee, a school, applied for renewal of registration under section 12AB and approval under section 80G. The CIT(E) rejected the applications because the assessee could not produce a formal trust deed or Memorandum of Association, despite being registered under the Maharashtra Public Trusts Act and having enjoyed IT exemptions for decades.

What were the issues?

Whether renewal of registration under section 12AB can be denied solely due to the absence of a formal trust deed when other documentary evidence establishes the institution's charitable nature and existence.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH

Before: SHRI AMIT SHUKLA & SHRI ARUN KHODPIA

For Appellant: Ms. Vasanti B Patel
For Respondent: Shri Sandeep Lakra, CIT DR
Hearing: 28/07/2026Pronounced: 05/08/2026

आदेश / O R D E R PER BENCH: These two appeals have been preferred by the assessee, Roman Catholic School of St. Teresa’s, against two separate orders, both dated 29.03.2026, passed by the learned Commissioner of Income Tax (Exemption), Mumbai [“CIT(E)”]. The first appeal in ITA No. 5786/Mum/2026 arises from the order whereby the learned CIT(E), while exercising powers under section 12AB of the Income-tax Act, 1961 (“the Act”), rejected the

2 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas assessee’s application filed in Form No. 10AB seeking renewal of registration under section 12AB. The second appeal in ITA No. 5787/Mum/2026 arises from the consequential order rejecting the assessee’s application for renewal of approval under section 80G(5) of the Act. Since both the appeals arise out of a common set of facts and the issues involved are intrinsically connected, they were heard together and are being disposed of by this consolidated order.

2.

The assessee is a long-established public charitable institution engaged exclusively in the field of education by running Roman Catholic School of St. Teresa’s, situated at Charni Road, Mumbai. It is administered by the Roman Catholic Diocese of Bombay and functions under the ecclesiastical jurisdiction of the Roman Catholic Bishop of Bombay. The material placed before us reveals that the institution has been in existence for more than seven decades and has continuously carried on the charitable activity of imparting education without any deviation from its foundational objects. It stands registered as a public trust under the erstwhile Bombay Public Trusts Act, 1950 (now the Maharashtra Public Trusts Act, 1950), has enjoyed registration under section 12A of the Act since long, was granted registration under the new regime through Form No. 10AC and has also been enjoying approval under section 80G. Upon the expiry of the earlier registration period, the assessee preferred applications in Form No. 10AB seeking renewal of registration under section 12AB and the consequential renewal of approval under section 80G.

3 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas 3. During the course of the proceedings, the learned CIT(E) called upon the assessee to furnish, inter alia, a self-certified copy of the instrument of trust or Memorandum of Association in terms of Rule 17A of the Income-tax Rules, 1962. The assessee responded that it had never been constituted under a separate written trust deed or Memorandum of Association and explained that, being a Catholic missionary educational institution, its internal governance was regulated in accordance with Canon Law while simultaneously remaining subject to the provisions of the Maharashtra Public Trusts Act and other applicable laws. It was further pointed out that the assessee had furnished the statutory application submitted before the Charity Commissioner on 13.01.1955, the certificate of registration dated 20.06.1955 issued under the Bombay Public Trusts Act, together with other contemporaneous records evidencing its creation, establishment and uninterrupted existence as a public charitable institution. The learned CIT(E), however, took the view that the aforesaid documents merely evidenced registration of the trust and could not be regarded as documents constituting or evidencing its creation within the meaning of Rule 17A. Proceeding on that premise, and holding that the absence of a formal trust deed disabled him from recording satisfaction regarding the objects of the trust, he rejected the application for renewal of registration under section 12AB. Since the approval under section 80G was considered to be dependent upon the subsistence of registration under section 12AB, the application under section 80G was also rejected as a consequential measure.

4 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas 4. Being aggrieved by the aforesaid orders, the assessee is in appeal before us. At the very outset, it was submitted by both the parties that the issue arising for our consideration is substantially covered by the batch of appeals decided by this Bench on the same date in the cases of St. Joseph’s High School, St. Thomas High School, School of St. John the Evangelist, Fatima High School, St. Stanislaus High School, St. Stanislaus Institution and other similarly placed educational institutions administered by Catholic religious bodies. It was contended that the reasoning adopted by the learned CIT(E.), the statutory provisions involved, the nature of the documentary evidence placed on record and the controversy regarding the interpretation of section 12AB read with Rule 17A are materially identical. The principal issue, therefore, is whether renewal of registration under section 12AB can be declined solely because the assessee was not constituted under a formal written trust deed, despite its undisputed existence as a public charitable trust duly recognised under the Maharashtra Public Trusts Act and continuously enjoying registration and exemption under the Income-tax Act for several decades. It is in the backdrop of these undisputed facts that the rival submissions require to be examined.

5.

The learned counsel appearing on behalf of the assessee assailed the impugned orders and submitted that the learned CIT(E.) has declined renewal of registration by adopting an unduly restrictive interpretation of section 12AB of the Act read with Rule 17A of the Income-tax Rules, 1962. It was submitted that the assessee has been carrying on the charitable activity of imparting

5 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas education continuously for more than seven decades and, throughout this period, has remained recognised as a public charitable trust under the Maharashtra Public Trusts Act besides enjoying registration under section 12A, thereafter under section 12AB and approval under section 80G of the Act. According to the learned counsel, the assessee was never constituted under a separate written trust deed or Memorandum of Association and, therefore, its case squarely falls within clause (b) of Rule 17A(2), which specifically contemplates institutions created or established otherwise than under an instrument. It was submitted that the statutory application filed before the Charity Commissioner on 13.01.1955, the certificate of registration dated 20.06.1955, the continuous recognition by the educational authorities, the registration granted under the Income-tax Act over several decades and the other contemporaneous records together constitute adequate documentary evidence evidencing the creation and establishment of the trust within the meaning of Rule 17A(2)(b). It was further argued that the learned CIT(E.) has proceeded on the erroneous assumption that every charitable institution must necessarily be constituted by a formal written instrument, thereby rendering clause (b) of Rule 17A(2) otiose. In support of these submissions, reliance was placed upon Laxminarayan Maharaj v. CIT [(1984) 150 ITR 465 (MP)], Pr. CIT (Exemptions) v. Dawoodi Bohra Masjid [(2018) 402 ITR 29 (Guj.)], CIT v. Hazrat Pir Shah-e-Alam Roza Estate Trust [(2002) 256 ITR 193 (Guj.)], Ananda Social & Educational Trust v. CIT [(2020) 426 ITR 340 (SC)], Chamber of Tax Consultants v. CIT (Exemptions) [(2026) 184 taxmann.com 374 (Bom.)], besides the decisions of the

6 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas Tribunal in Tsurphu Labrang, Merciful Jesus Church, Sri Kodandaramaswamy Temple and Shree Ram Gopal Temple Trust, all of which, according to the learned counsel, support the proposition that registration cannot be denied merely because the institution was not created under a formal trust deed.

6.

Per contra, the learned Departmental Representative supported the reasoning contained in the impugned orders and submitted that the trust deed or other constitutive document forms the very foundation for examining the charitable objects of the institution, the nature of the trust, the intended beneficiaries and the legal framework governing its administration. It was contended that, despite repeated opportunities, the assessee failed to furnish any instrument creating the trust and, therefore, the learned CIT(E.) was justified in holding that he could not arrive at the statutory satisfaction contemplated under section 12AB regarding the objects of the trust and its entitlement to renewal of registration. According to the Revenue, the application submitted before the Charity Commissioner and the certificate of registration merely establish registration under the Maharashtra Public Trusts Act and cannot, by themselves, substitute the constitutive document envisaged under Rule 17A. Consequently, it was argued that the rejection of approval under section 80G, being consequential upon the rejection of registration under section 12AB, also calls for no interference.

7.

We have thoughtfully considered the rival submissions, examined the impugned orders and perused the entire material

7 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas available on record. From the pleadings advanced before us, it becomes manifest that the issue requiring adjudication is not res integra but stands substantially covered by the batch of appeals decided by this Bench on the same date involving similarly situated educational institutions administered by Catholic religious bodies. We find that the foundation of the impugned order, the statutory provisions invoked, the documentary evidence relied upon by the assessee and the legal propositions canvassed before us are substantially the same as those examined in the lead matters beginning with St. Joseph’s High School and the connected appeals. The Revenue has also not been able to demonstrate any distinguishing factual feature or any change in the statutory framework which may justify taking a view different from that already adopted by us. It is, therefore, appropriate to examine the present controversy in the light of the principles enunciated in those decisions and thereafter determine whether the impugned orders can be legally sustained on the peculiar facts of the present case.

8.

We have given our thoughtful consideration to the rival submissions and carefully examined the material placed before us. Having done so, we are of the considered opinion that the controversy arising in the present appeals no longer survives for any independent or elaborate adjudication. The issue involved herein stands substantially covered by the batch of appeals decided by this Bench on the same date concerning similarly situated educational institutions administered by the Roman Catholic Diocese of Bombay and other Catholic religious bodies,

8 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas wherein the scope of section 12AB of the Act, Rule 17A of the Income-tax Rules, the relevant provisions of the Maharashtra Public Trusts Act and the entire body of judicial precedents cited before us were examined in considerable detail. The factual foundation giving rise to the present appeals, the reasoning adopted by the learned CIT(E.) and the legal objections urged before us are substantially indistinguishable from those considered in the aforesaid lead matters.

9.

On an independent examination of the facts of the present case, we find that the assessee has been carrying on the charitable activity of imparting education for several decades and has continuously functioned as a recognised public charitable institution. It has remained registered under the Maharashtra Public Trusts Act and has, over the years, enjoyed registration under section 12A, thereafter under section 12AB and approval under section 80G of the Act. Significantly, the learned CIT(E.) has not recorded any adverse finding either with regard to the genuineness of the assessee’s activities, the charitable nature of its objects or any violation of the statutory conditions governing charitable institutions. The entire rejection proceeds only on the premise that the assessee has not produced a formal trust deed or Memorandum of Association. In our considered opinion, such an approach places undue emphasis upon the form of the constitutive document while overlooking the overwhelming documentary material establishing the creation, continued existence and recognised charitable character of the institution.

9 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas 10. In our lead judgment rendered in ITA Nos. 5646/Mum/2026 and 5849/Mum/2026, St. Joseph’s High School v. CIT(E.), we have already undertaken an exhaustive examination of the legislative scheme governing section 12AB, Rule 17A and the expression “created or established otherwise than under an instrument” occurring in Rule 17A(2)(b). We have also examined the judicial authorities relied upon by both sides and have recorded our conclusions as to why the absence of a formal written trust deed, by itself, cannot constitute a valid ground for refusing renewal of registration where the institution is otherwise able to establish, through contemporaneous statutory records and long- standing recognition under law, its creation, charitable objects and genuine activities. Since the factual and legal issues arising in the present appeals are materially the same, and no distinguishing circumstance has been pointed out by the Revenue, we adopt and incorporate the reasoning and conclusions recorded in the aforesaid lead decision as part of the present order. Applying those principles mutatis mutandis, we are unable to sustain the view taken by the learned CIT(E.).

11.

We are further of the opinion that the statutory enquiry contemplated under section 12AB is essentially directed towards satisfying the competent authority regarding the charitable objects of the institution, the genuineness of its activities and its compliance with the applicable legal requirements. Where these foundational requirements remain undisputed, and the institution has consistently functioned as a recognised public charitable trust for several decades, renewal cannot be denied merely because the

10 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas institution was historically established otherwise than through a formal written instrument. Such an interpretation would not only overlook the express language of Rule 17A(2)(b) but would also defeat the object underlying the statutory framework.

12.

Equally significant is the fact that the Revenue has not brought on record any distinguishing feature which would justify adopting a view different from the one already taken by this Bench in the companion matters decided on the same date. Judicial consistency is an integral facet of certainty in tax administration. Therefore, where the facts, statutory provisions and legal issues are substantially identical, consistency in adjudication demands that a similar conclusion should ordinarily follow unless compelling reasons exist for departure. No such reason has been demonstrated before us in the present case.

13.

In view of the foregoing discussion, and respectfully following the ratio laid down by this Bench in the lead judgment in ITA Nos. 5646/Mum/2026 and 5849/Mum/2026 (St. Joseph’s High School v. CIT(E.)), as also the connected companion matters pronounced on the same date, we set aside the impugned order passed under section 12AB of the Act and direct the learned CIT(E.) to grant renewal of registration to the assessee in accordance with law. Since the rejection of approval under section 80G is purely consequential to the refusal of registration under section 12AB and no independent ground has been assigned for denying such approval, the consequential order is likewise set aside with a

11 ITA No.5786 & 5787/Mum/2026 Roman Catholic School of St. Teresas direction to grant the approval sought by the assessee. The appeals filed by the assessee are, accordingly, allowed.

14.

In the result, both the appeals of the assessee are allowed.

Order pronounced on 5th August, 2026.

Sd/- Sd/- (ARUN KHODPIA) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 05/08/2026 KARUNA, sr.ps

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//

BY ORDER,

(Asstt. Registrar) ITAT, Mumbai

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