https://www.taxtmi.com/caselaws?id=771607 The Madras HC denied exemption under Section 11(4A) to a microfinance institution claiming charitable status. The court held that the appellant's primary business of lending operations with 2-2.5% processing fees through self-help groups constituted commercial activity, not charitable purpose. The business was not incidental to charitable objectives but was the main business object. Following the proviso to Section 2(15) effective from 2009, activities involving trade, commerce or business for consideration cannot qualify as charitable purposes. The court distinguished this from cases where business is merely incidental to charitable objectives, ruling the income was neither from property nor contributions eligible for exemption under Sections 11 & 12. en-us Fri, 09 May 2025 00:00:00 +0530 Wed, 28 May 2025 08:26:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771607 The Madras HC denied exemption under Section 11(4A) to a microfinance institution claiming charitable status. The court held that the appellant's primary business of lending operations with 2-2.5% processing fees through self-help groups constituted commercial activity, not charitable purpose. The business was not incidental to charitable objectives but was the main business object. Following the proviso to Section 2(15) effective from 2009, activities involving trade, commerce or business for consideration cannot qualify as charitable purposes. The court distinguished this from cases where business is merely incidental to charitable objectives, ruling the income was neither from property nor contributions eligible for exemption under Sections 11 & 12. Case-Laws Income Tax Fri, 09 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771607