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2018 (9) TMI 2125 - AT - Income TaxExemption u/s. 11 - activity of micro finance squarely falls under the definition of trade, commerce or business which shall not be regarded as a 'charitable purpose' - Charitable activity u/s 2(15) or not? - As per revenue assessee obtained loan from financial institutions with interest and advanced loans to self help groups at a higher rate of 0.5% than the rate at which the loan is obtained from the bank/financial institutions - CIT(A) allowed exemption - HELD THAT:- The assessee explained before us that in the activity of micro financing, the assessee obtained loan from banks and or financial institutions and advanced the same to self help group and poor persons. Above submissions of the assessee could not be controverted by the department. No material could be brought on record to show that the loan was advanced of any big amount or loan was advanced to any economically affluent persons. Thus, we find merit in the contention of the assessee that the activity was carried out with the object of providing relief to the poor. In the circumstances, we find no error in the order of the CIT(A), which was passed following the decisions of Spandana (Rural & Urban Development Organisation) [2010 (2) TMI 1166 - ITAT VISAKHAPATNAM], Bharatha Swamukhi Samsthe [2008 (12) TMI 310 - ITAT BANGALORE], Disha India Micro Credit [2011 (1) TMI 693 - ITAT NEW DELHI], Bharat Integrated Social [2011 (5) TMI 1143 - ITAT CUTTACK], Agricultural Produce and Market Committee [2007 (3) TMI 213 - BOMBAY HIGH COURT] and Sai Publication Fund [2002 (3) TMI 45 - SUPREME COURT]. Therefore, we confirm the findings of the CIT(A). Appeal of the revenue is dismissed.
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