Tribunal grants appeal, directs registration under section 12A emphasizing charitable objects scrutiny.

The Tribunal allowed the appeal, setting aside the CIT's order and directing the grant of registration u/s.12A to the society. The judgment emphasized that the CIT's scrutiny should focus on the trust's charitable objects and genuine activities, not income utilization, during registration assessments.

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Issues:
- Rejection of application for grant of approval u/s.12A of the Income Tax Act, 1961.

Analysis:
The appeal was filed against the order of CIT, Raipur, rejecting the application for registration u/s.12A of the Income Tax Act, 1961. The Assessing Officer reported that the society failed to establish its charitable activities' genuineness. The CIT observed the society's activities were not charitable, primarily holding a camp to promote Urologists for mutual benefit. The CIT rejected the registration application based on the society's failure to produce books of account and the nature of its activities.

The Authorized Representative argued that the society's objects were charitable, emphasizing the promotion of health programs and free medical camps. The CIT's refusal was challenged, pointing out the society's charitable aims and activities. The AR contended that the CIT's role was to assess the trust's objects' genuineness, not its income utilization, which falls under the Assessing Officer's purview.

The Tribunal examined the society's objects and found them genuine and charitable. Citing precedents, the Tribunal emphasized that the CIT's role in granting registration u/s.12A was to verify the trust's charitable nature and genuine activities. As the society's objects were charitable and genuine, the CIT's rejection was deemed unjustified. Rulings from Tribunals and High Courts supported the view that registration should be granted based on the trust's genuineness and charitable objectives, not income considerations.

Consequently, the Tribunal allowed the appeal, setting aside the CIT's order and directing the grant of registration u/s.12A to the society. The judgment emphasized that the CIT's scrutiny should focus on the trust's charitable objects and genuine activities, not income utilization, during registration assessments.

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