https://www.taxtmi.com/caselaws?id=446216 ITAT Mumbai held that a government-established trust providing credit guarantee services to small scale industries and micro enterprises qualified for exemption under section 11. The trust charged guarantee fees on cost-to-cost basis with minimal markup to facilitate credit access without collateral security. Despite revenue's contention that fee charging disqualified charitable status, ITAT found the trust pursued advancement of general public utility without commercial motive, evidenced by annual deficit of Rs. 400 crores. The tribunal allowed provision for guarantee claims as legitimate deduction under mercantile accounting system and directed set-off of brought forward deficits against current year income. en-us Fri, 24 Nov 2023 00:00:00 +0530 Mon, 27 Nov 2023 13:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446216 ITAT Mumbai held that a government-established trust providing credit guarantee services to small scale industries and micro enterprises qualified for exemption under section 11. The trust charged guarantee fees on cost-to-cost basis with minimal markup to facilitate credit access without collateral security. Despite revenue's contention that fee charging disqualified charitable status, ITAT found the trust pursued advancement of general public utility without commercial motive, evidenced by annual deficit of Rs. 400 crores. The tribunal allowed provision for guarantee claims as legitimate deduction under mercantile accounting system and directed set-off of brought forward deficits against current year income. Case-Laws Income Tax Fri, 24 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446216