Microfinancing activity by charging exorbitant interest not charitable in nature: ITAT Bangalore

Sanghamitra Rural Financial Services Vs ACIT (Exemptions) (ITAT Bangalore) ITAT Bangalore held that microfinancing activities by charging exorbitant interest cannot be considered to be charitable purpose in terms of section 2(15) of the Income Tax Act accordingly exemption claimed u/s 11 and 12 duly deniable. Facts- Main issue involved here is whether the microfinancing activity conducted by the assessee falls under the first limb of section 2(15) of the Act or activities such as advancement of any other object of general public utility or any other activity, which falls outside the scope of s...