https://www.taxtmi.com/caselaws?id=752957 ITAT Bangalore held that assessee's microfinancing activities charging exorbitant interest rates constituted commercial rather than charitable activities, disqualifying exemption under section 11. The tribunal found the organization operated like commercial banks with dominant profit motive, lacking charitable expenditure benefiting low-income groups. The proviso to section 2(15) was invoked as activities were commercial in nature despite registration under section 12AA. The assessee's plea that microfinancing serves rural economy was rejected, with tribunal noting such logic would extend exemptions to cooperative societies and commercial banks. Decision favored revenue department. en-us Wed, 03 Jan 2024 00:00:00 +0530 Tue, 21 May 2024 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752957 ITAT Bangalore held that assessee's microfinancing activities charging exorbitant interest rates constituted commercial rather than charitable activities, disqualifying exemption under section 11. The tribunal found the organization operated like commercial banks with dominant profit motive, lacking charitable expenditure benefiting low-income groups. The proviso to section 2(15) was invoked as activities were commercial in nature despite registration under section 12AA. The assessee's plea that microfinancing serves rural economy was rejected, with tribunal noting such logic would extend exemptions to cooperative societies and commercial banks. Decision favored revenue department. Case-Laws Income Tax Wed, 03 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752957