The assessee-trust claimed exemption under S. 11 of the Act . The AO denied the on the ground that the assessee was engaged in micro finance activities, wherein it was charging exorbitant interest from its beneficiaries and no charitable activities were involved in micro finance activities. On appeal CIT (A) affirmed the order of the AO . On appeal the Tribunal held that the activities of micro finance were not charitable in nature and the assessee was not entitled to the claim of benefit under S. 11 of the Act .( AY.2010-11, 2011-12)
Shalom Charitable Ministries Of India v. ACIT (2020) 81 ITR 20 ( Cochin ) (Trib)
S. 11 : Property held for charitable purposes – Micro finance activity — Not charitable in nature — Not entitled to exemption [ S. 2 (15) ]