SACRED HEART CHURCH,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS, MUMBAI

ITA 5707/MUM/2026Status: DisposedITAT Mumbai25 September 2026AY 2026-275 pages
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What did the Tribunal hold?

The Tribunal held that the rejection of the application solely on the ground of absence of a formal Instrument of Trust/MoA was not justified. It relied on its own decision in Tsurphu Labrang, which was also upheld by the Delhi High Court, establishing that a formal Trust Deed is not a prerequisite for registration. The Tribunal also noted Rule 17A(2)(b) of the Income Tax Rules, 1962, which allows for the production of certified copies of documents evidencing the establishment of a trust if it is created otherwise than by an instrument. Therefore, the rejection at the threshold was deemed inappropriate. The Tribunal set aside the impugned order and restored the application to the file of the CIT (Exemptions) for disposal on merits, considering other requirements and compliances, after granting an adequate opportunity of hearing. The principle is that the absence of a formal trust deed alone cannot be a bar to registration if other evidence of the trust's establishment and functioning exists.

What were the facts?

The appellant, Sacred Heart Church, a public religious and charitable trust, sought renewal of its registration under Section 12AB of the Income Tax Act, 1961. The learned CIT (Exemptions) rejected the application, holding that the appellant failed to provide a copy of its Trust Deed/Memorandum of Association (MoA). The CIT noted that this document is mandatory for ascertaining the trust's objects and activities, and that while the appellant claimed to be governed by Canon Law, registration under the Income Tax Act is governed by the Act itself. The appellant argued it was established in 1954, registered with the Charity Commissioner, and governed by Canon Law, with objects falling under Section 2(15) of the Act. The appeal challenges the CIT's order dated 29.03.2026.

What were the issues?

1. Whether the absence of a formal Instrument of Trust/Memorandum of Association (MoA) is a valid ground for refusing renewal of registration under Section 12AB of the Income Tax Act, 1961, when the trust is established otherwise than by a formal instrument. Assessee's Contentions: - Relied on the Tribunal's decision in Tsurphu Labrang (2016) 159 ITD 848 (Del), confirmed by the Delhi High Court, holding that a formal Trust Deed is not necessary for registration under Section 12A/12AA. - Cited Madhya Pradesh High Court in Laxminarayan Maharaj (150 ITR 465) and Gujarat High Court in Hazarat Pir Shah-e-Alam Roza Estate Trust (256 ITR 193), stating that findings of the Charity Commissioner operate as findings in rem and cannot be ignored. - Pointed out that the same CIT (Exemptions) granted registration to similarly situated trusts. Revenue's Contentions: - Submitted that examination of the trust's objects, nature, and genuineness of activities is required for registration/renewal, and in its absence, the CIT was justified in rejecting the application.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 2(15),Section 12A(1)(b),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “G”, MUMBAI

Before: Justice (Retd.) C V Bhadang & Shri Prabhash Shankar

For Appellant: Ms Vasanti Patel
For Respondent: Shri Basavaraj Hiremath- CIT DR
Hearing: 01.09.2026Pronounced: 25.09.2026

Per Justice (Retd.) C V Bhadang, President:

By this appeal, the appellant-trust is challenging the order dated 29.03.2026 passed by the learned CIT (Exemption) thereby refusing to grant renewal of registration to the appellant under Section 12AB of the Income Tax Act, 1961 (‘Act’ for short) on the ground that the appellant is not constituted under any specific trust deed.

2.

The brief facts are that the appellant is a public religious and charitable trust and is running Sacred Heart Church at 26, Sasmira Marg, Worli, Mumbai. The appellant-trust was established in the year 1954 and is administered by the Roman Catholic Diocese of Bombay Province and is subject to the juri iction

2 Sacred Heart Church of Roman

The order continues below.

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