Church of Our Lady of Immaculate Conception Vs CIT (Exemption) (ITAT Mumbai)
No Trust Deed Because None Ever Existed: ITAT Directs 12AB Renewal for Three Mumbai Churches
Summary: All three churches had sought renewal of registration under section 12AB. The Commissioner of Income Tax (Exemptions), Mumbai, rejected their applications principally because they could not furnish a formal trust deed or Memorandum of Association.
The Document the Churches Could Not Produce
The churches explained that they had not been created under separate written trust deeds or Memoranda of Association. They therefore could not submit an instrument that, according to them, had never existed.
They relied instead on their status as religious and charitable institutions registered as public trusts under the Maharashtra Public Trusts Act, 1950. The material placed before the Commissioner (Exemptions) included documents available with the Charity Commissioner, such as applications, Schedule-I particulars and registration certificates, as applicable. The churches also stated that their administration and functioning were governed by Canon Law.
The Commissioner (Exemptions) was not satisfied. In his view, registration under the Maharashtra law established their registered status but did not adequately prove their creation or establishment for the purposes of Rule 17A(2). Without a trust instrument or MOA, he considered the document requirement unfulfilled and held that he could not arrive at the satisfaction required under section 12AB regarding their objects and activities. He rejected all three renewal applications.
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