Sec. 12AA & 260A of Income-tax Act, 1961 - Charitable Purpose – Revenue preferred appeal against the order of Tribunal in directing the CIT(Exemption) to grant the registration under s. 12AA of that Act irrespective of the findings by the CIT (Exemption) that the society exists for the purpose of profit of the office bearers not for charitable purpose thus attracts proviso to s. 13(1)(c) of the IT Act. The assessee-society applied for registration under s. 12AA of the Act before the CIT which was rejected mainly on the ground that the payment of the rent of the premises to related parties is not on pro rata basis though the premises are adjoining and the rent was being paid only to the office bearers of the society. Tribunal noticed that s. 12AA of the Act nowhere provides that CIT (Exemption) while considering the application for registration is also required to examine whether the income derived by the trust is being spent for charitable purposes or the Trust is earning profit. High Court while dismissing the appeal of the revenue held that “Tribunal has rightly come to the conclusion that the genuineness of the objects of the assessee-society could not be doubted and has rightly directed the CIT, Bhopal to grant registration to the society”. - CIT V/s DIVINE SHIKSHA SAMITI - [2020] 316 CTR 385 (MP)