ITAT Mumbai Deletes ₹2936 Cr Penalty on CGTMSE – Section 2(15) Proviso Not Attracted

Credit Guarantee Fund Trust for Micro & Small Enterprises Vs DCIT (ITAT Mumbai) Facts Assessee, a trust registered u/s 12A, created by Govt. of India & SIDBI to provide credit guarantee support to MSMEs, filed return claiming exemption u/s 11. AO denied exemption by invoking proviso to s.2(15), holding guarantee fee collection to be business income. AO computed taxable income at ₹4132.27 Cr (after disallowing provision for guarantee claims of ₹3470.43 Cr) & levied penalty u/s 270A of ₹2936.36 Cr (200% of tax) for misreporting. CIT(A) upheld penalty on the ground that Revenue ...