Assessee, a charitable trust, was engaged in lending money to self-help groups.It borrowed money from banks and in turn lent money to small borrowers through self-help groups and charged processing fees ranging between 2 to 2.5 per cent on the amount lent. Assessee claimed exemption under section 11(4A) on income from processing fees collected. Assessing Officer denied the same. Tribunal affirmed the order of the Assessing Officer. On appeal, the Court held that microfinance would fall under ‘any other object of general public utility’ and not ‘relief of poor’ and that the main objective of the assessee itself was microfinance, i.e., to do lending operations in the microfinance sector to earn commission ranging from 2 per cent to 2.5 per cent. Since the business carried on by the assessee by lending operations was not incidental to the attainment of the objectives of the assessee as a charitable institution, but rather it was the main business object,  the assessee is not entitled to exemption either under section 11(1) or under section 11(4A). Appeal of the assessee dismissed. (AY. 2009-10)