Section 11 Exemption Denied for Microfinance-Focused Entity: Madras HC

Kalanjiam Development Financial Services Vs ITO (Exemptions) (Madras High Court) Madras High Court held that main object of the Charitable Trust being microfinance is not eligible which is not charitable in nature cannot claim the benefit of exemption either under Section 11(1) or under Section 11(4A) of the Income Tax Act. Facts- The Appellant is a “Charitable Trust” engaged in lending money to self-help groups, claimed exemption u/s. 11(4A) of the IT Act. The said activity of lending money carried out by the Appellant is recognized as a microfinance by the Finance Ministry. The Appellant...