The ITAT allowed the assessee's appeal, set aside the order of...

The ITAT allowed the assessee's appeal, set aside the order of the Ld. CIT(E) and directed grant of registration under s.12AA. It held that the assessee, a s.25 company formed to assist ex-servicemen and dependants, demonstrated genuineness and charitable objects; incidental receipts from sale of medicines and other activities did not convert activities into a trade or business. The Tribunal concluded the CIT(E) exceeded permissible inquiry at the registration stage by re-examining merits beyond genuineness and objects, noting prior departmental treatment and exemptions under s.11. Accordingly, registration must be granted, limited to verification of genuineness and conformity with declared charitable objects.