Roman Catholic Church of the Most Sacred Heart Vs CIT(E) (ITAT Mumbai)
No Written Trust Deed Since 1971: Can a Church Lose Its 12AB Registration on Renewal?
Summary: The Roman Catholic Church of the Most Sacred Heart had existed as a registered public religious and charitable trust since 1971 and had held income-tax registration for decades. When it applied to renew registration under section 12AB, the Commissioner of Income Tax (Exemptions) demanded a formal trust deed or memorandum of association. The Church explained that it was governed by Canon Law and had not been constituted through a separate written trust deed. It furnished records from its registration under the Maharashtra Public Trusts Act.
The Commissioner rejected the application. The Mumbai Tribunal held that Rule 17A(2) expressly accommodates institutions established without a written instrument. Following decisions concerning similarly situated institutions, it set aside the rejection and directed grant of registration under section 12AB. That final direction is important: this appeal was allowed, rather than merely restored for another examination.
A Longstanding Institution Asked to Produce a Trust Deed
The Church had been operating since 1971 and was registered as a public religious and charitable trust under the Maharashtra Public Trusts Act, 1950. It had also held registration under the Income-tax Act and claimed exemption under section 11 over the years. Its registration under the newer regime was valid up to AY 2026–27.
