ST MARYS HIGH SCHOOL,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS, MUMBAI

Since both appeals involve identical issues arising from the identical impugned order, thus, they were heard together and are being disposed of by this common order, taking ITA No. 5647/MUM/2026 as the lead case.

In the lead case, the Assessee filed an application dated 25.09.2025 in Form No. 10AB, seeking renewal of registration u/s 12AB of the Act. The Ld. Commissioner, after issuing notices and considering the submissions and documents furnished by the Assessee, rejected the application vide impugned order dated 29.03.2026, mainly on the ground that the Assessee had failed to furnish a trust deed, Memorandum of Association or other document evidencing its creation or establishment, as required under Rule 17A(2) of the Income-tax Rules, 1962 (in short, “the Rules”).

The Assessee, thus, being aggrieved, has challenged the impugned order mainly on the ground that it is a public religious and charitable trust, registered with the Charity Commissioner under the Maharashtra Public Trusts Act, 1950, since 1955, and that its constitution and administration are governed by Canon Law. The Assessee submitted that the application in Schedule II, registration certificate issued by the Charity Commissioner, earlier registrations under the Act, audit reports and other records sufficiently establish its existence and charitable character. The Assessee further submitted that Rule 17A(2)(b) expressly recognises institutions established otherwise than under a written instrument and, therefore, rejection merely for want of a separate trust deed is

We have heard the parties, perused the material available on record and considered the findings recorded by the Ld. Commissioner. The controversy involved in these appeals is substantially identical to that considered by the Coordinate Bench in the uploaded composite order concerning Holy Family Church and Others, ITA No. 5710/MUM/2026 and connected appeals, wherein the identical rejection of registration u/s 12AB for want of a formal trust deed or Memorandum of Association was examined in the context of Rule 17A(2) of the Rules.

The Coordinate Bench, while examining the statutory provisions, observed that Rule 17A(2)(a) applies where an institution is established under a written instrument, whereas Rule 17A(2)(b) expressly permits documentary evidence of creation or establishment where the institution is constituted otherwise than under such instrument. Thus, a separate trust deed or Memorandum of Association cannot be insisted upon in every case irrespective of the manner of establishment of the institution. The Coordinate Bench further observed that section 1 of the Indian Trusts Act, 1882, excludes public or private religious or charitable endowments from its application and, therefore, section 5 thereof cannot, by itself, justify insisting upon a written trust instrument in such cases.

The Coordinate Bench also observed that the documents underlying registration with the Charity Commissioner, earlier registration under the Act and evidence concerning the objects and activities of the institution require substantive examination.

In the instant case also, it is evident from the impugned order that the Assessee had furnished its registration certificate issued by the Charity Commissioner and the application submitted under the Maharashtra Public Trusts Act, 1950. However, the Ld. Commissioner treated these documents as insufficient without adequately examining their substantive evidentiary value, particularly in the context of Rule 17A(2)(b). The rejection essentially rests upon the absence of a formal constitutive instrument. In our considered view, such an approach requires reconsideration in the light of the statutory distinction between clauses (a) and (b) of Rule 17A(2) and the reasoning adopted by the Coordinate Bench in the aforesaid identical matter.

Consequently, following the reasoning adopted in the aforesaid composite order and considering the identical nature of the controversy, we deem it appropriate to set aside the impugned order and restore the Assessee's application to the file of the Ld. Commissioner for fresh adjudication. The Ld. Commissioner shall examine the documents evidencing the Assessee's creation or establishment, including the records maintained by the Charity Commissioner, earlier registration orders, audit reports and other relevant evidence concerning its objects and activities, and determine whether the requirements of section 12AB read with Rule

Accordingly, ITA No. 5647/MUM/2026 is allowed for statistical purposes. Since ITA No. 5665/MUM/2026 involves the identical issue arising from the same impugned order, the directions contained herein shall apply to that appeal as well.

In the result, both appeals filed by the Assessee stand allowed for statistical purposes.