M/S. INNOVATIVE MICRFINANCE FOR POVERTY ALLEVIATION & COMMUNITY TRANSFORMATION,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

ITA 1161/CHNY/2025Status: DisposedITAT Chennai06 August 202526 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that a coordinate bench had previously ruled against the assessee for a similar issue in an earlier assessment year. The Tribunal found that the assessee charged exorbitant interest rates, deviating from its charitable objectives and engaging in commercial money lending.

What were the facts?

The assessee, a microfinance institution, appealed against the denial of exemption under Section 80G. The CIT(E) treated its activities as commercial due to high interest rates charged on loans to beneficiaries, compared to its borrowing rates.

What were the issues?

Whether the microfinance activities of the assessee, characterized by high interest rates, constitute commercial activities, thereby disentitling it from exemption under Section 80G.

Which sections of the Income-tax Act were involved?

Section 80G,Section 11,Section 12AA

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, C BENCH: CHENNAI

Before: SHRI ABY T VARKEYAND

PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / EXM / F / EXM45 / 2024-25 / 1074840290(1) dated 21.03.2025 of the Learned Commissioner of Income Tax (Exemptions) [herein after “CIT(E), Chennai. The reference to the word "Act" in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time.

2.

0 The only issue c

The order continues below.

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