High School trust’s 12AB renewal cannot be denied merely because no written trust deed exists, ITAT holds

5-Second Takeaway

The ITAT held that a long-established public charitable educational institution could not be denied renewal of registration under section 12AB merely because it did not have a formal written trust deed or memorandum of association. The consequential rejection of approval under section 80G was also set aside, there being no independent adverse finding against the assessee.

St. Thomas High School, a long-standing public charitable educational institution, sought renewal of its registration under section 12AB and related approval under section 80G. The institution was already registered under the Maharashtra Public Trusts Act and had for decades been recognised by the tax department as charitable.

The Commissioner (Exemption) refused renewal mainly on the ground that the assessee had not been constituted under a formal written trust deed. The tribunal noted that there was no dispute about the educational objects, the genuineness of the activities, or any change in the institution’s purposes or operations.

It further observed that the department itself had earlier granted registration under section 12A, later under section 12AB, and also approved the institution under section 80G. In the absence of any material change in facts or law, that consistent recognition could not be displaced on the narrow ground invoked by the Commissioner.

The order rejecting renewal under section 12AB was therefore unsustainable. The refusal of section 80G approval, being purely consequential and unsupported by any separate adverse finding, was also set aside.