On my version (Windoze) when I put a CD in the CD Drive iTunes automatically identifies the tracks (if connected to internet) and asks if I want to import the CD. If I click on the "Import" button it then converts the tracks to whichever format I have set as default and lists it in the music library by artist, genre (and other stuff?).
You may need to change some settings - try looking at the help files and the preferences menu?
Quack!
GtD.