Denial of exemption u/s 11 unjustified as primary activity of trust doesn’t involve profit motive

Navodaya Grama Vikas Charitable Trust Vs DCIT (ITAT Bangalore) ITAT Bangalore held that denial of exemption under section 11 of the Income Tax Act unjustified as the primary activity of charitable trust is not run with profit motive. Accordingly, collection of money for micro financing in the form of interest on the loans advanced to the self help group members will not defeat the real object in order to deprive of the exemption. Facts- The assessee trust was formed in terms of the Deed of Trust dated 08.07.2004 and Amendment Deed dated 29.11.2004 and is engaged in the charitable activity of p...