The CIT(E) has passed an order under section 12AA of the Act directing the registration of the trust as ‘general public utility trust’. It was argued that CIT(E) was supposed to register the trust or refuse to register the trust but there was no necessity to qualify it as ‘general public utility trust’. The taxpayer argued that the exemption under section 11, 12 and 13 would be available only after the AO was satisfied with the genuineness of the activities carried out. The AO would every year examine whether the activities of assessee fell within the ambit of section 2(15) or not. Thereby it was submitted that order of CIT(E) should be modified and trust should be registered without any qualification. The Tribunal held  that provisions of section 12AA of the Act provided that if the CIT(E) is satisfied with the object of the trust and genuineness of the activities, an order is needed to be passed in writing accepting or rejecting the trust. Thus the power of the CIT is to register or refuse to register the Trust but cannot qualify the Trust as ‘general public utility trust’. The Tribunal held that it is the AO who has to examine every year the activities of the Trust whether they fall within the clauses of charitable activities. Thereby the Tribunal directed the trust to be registered under section 12AA of the Act without any qualification. Thus the appeal of taxpayer was allowed.