https://www.taxtmi.com/caselaws?id=462247 The ITAT Chennai dismissed the assessee's appeal challenging disallowance of exemption under section 11. The assessee operated a micro-finance business, borrowing from commercial banks at 12-14% and lending to alleged poor beneficiaries at 25.13%. Both AO and CIT(A) concurrently found the activities constituted advancement of general public utility but were hit by the proviso to section 2(15), involving commercial activities for profit. The tribunal held the organized micro-financing activity was predominantly profit-driven business, not charitable, charging exorbitant interest rates that didn't benefit the poor or low-income groups, following Supreme Court precedent in Ahmedabad Urban Development Authority. en-us Wed, 10 Jul 2024 00:00:00 +0530 Wed, 04 Jun 2025 19:04:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462247 The ITAT Chennai dismissed the assessee's appeal challenging disallowance of exemption under section 11. The assessee operated a micro-finance business, borrowing from commercial banks at 12-14% and lending to alleged poor beneficiaries at 25.13%. Both AO and CIT(A) concurrently found the activities constituted advancement of general public utility but were hit by the proviso to section 2(15), involving commercial activities for profit. The tribunal held the organized micro-financing activity was predominantly profit-driven business, not charitable, charging exorbitant interest rates that didn't benefit the poor or low-income groups, following Supreme Court precedent in Ahmedabad Urban Development Authority. Case-Laws Income Tax Wed, 10 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462247