TaxTMI 
TaxTMI 
2025 (7) TMI 21
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....d u/s.263 of the Income-tax Act, 1961 (hereinafter "the Act") (orders dated 30.03.2024 and 31.03.2024). The relevant assessment years are 2014-2015 to 2016-2017 and 2018-2019. 2. Common issue is raised in these appeals, hence, they were heard together and are being disposed of by this consolidated order. Identical grounds are raised in these appeals. The grounds raised read as follows:- "1. That the order passed by the Ld. Commissioner of Income Tax (Exemptions), Kochi u/s.263 of the Income Tax Act dt. 30.03.2024 revising the assessment order dt. 26.03.2022 for A.Y. 2014-15 is infirm and unsustainable in law and contrary to facts and circumstances of the 2. That the Ld. Commissioner of Income Tax (Exemptions) erred in i....
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....d and interest paid, verify the nature of activities, vis-à-vis, the object of the assessee-trust and whether the assessee is entitled to exemption u/s.11 of the Act. 4. Aggrieved by the orders passed u/s.263 of the Act by the PCIT, the assessee has filed the present appeals before the Tribunal. The learned AR submitted that the issue in question is squarely covered by the order of the Tribunal in ITA No.329/Coch/2024 (order dated 01.06.2016) in assessee's own case for assessment year 2011-2012, wherein it has been categorically held that the micro financing activities carried on by the assessee, qualify as charitable activity under the first limb of section 2(15) of the Act. It is submitted that the above order of the Tribunal wa....
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....mong rural population from the commencement of the Trust in 1996 onwards." The above object of the Trust is carried out by providing financial assistance to indigent women. The relief to the poor is the dominant activity. The dominant objective is lending money to poor. Micro financing activity is not money lending business as commercially understood. Funds are provided to the rural women folk, who do not have any security to offer for availing loan. These women cannot approach bank or leading institutions for help as they cannot afford to provide security for availing loans. The assessee is helping the socially and economically weaker sections of the Society, as no other agency reaches out to meet their requirements. The fact that....
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.... to the numerous beneficiaries. This fact is referred to in the CIT(A)'s order vide paragraph-7(ii). As per Balance Sheet ending on 31.03.2011, an opening balance of the capital from beneficiaries security collection of Rs. 13.39 Crores, on which interest paid is Rs. 58,56,118/-. That means, out of interest collected from the beneficiaries on loan given is not taken wholly by the assessee but a portion thereof is credited to beneficiaries future security a/c as a benevolent fund which is kept in the saving a/c and an interest @ 4% is credited to the said benevolent fund, which is taken by the beneficiaries along with interest, while leaving the institution . Therefore an amount of Rs. 13.39 Crores is lying to the credit of the beneficiaries....
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.... a money lending activity without any charitable object. As regards reliance placed by Ld. AR on the decision of the ITAT, Chennai Bench, the assessee has a benefit of judgment of Hon'ble High Court of Andhra Pradesh and other Tribunals in his favour. Therefore, any decision which is favourable to the assessee should be followed in view of the judgment of the Hon'ble Supreme Court in the case of Vegetable Products 88 ITR 192. 18. Based on the above judgments and for reasons stated above, we are in agreement with the findings and the decision of the Ld. CIT(A) and accordingly, the order of the Ld. CIT(A) is upheld. Thus all the grounds of the Revenue are dismissed. Accordingly, the appeal of the Revenue is dismissed." 7. The abov....