Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 644 - AT - Income TaxExemption u/s 11 - applicability of first proviso to section 2(15) to the micro finance activity carried out by the assessee - submission of the Ld.DR that the receipts from micro finance activity falls under the category of advancement of any other object of general public utility, if it exceeds the specified limit of Rs.10,00,000/- during the year, the said activity cannot be considered to be charitable activity - HELD THAT:- CIT(A), by following the decision of ITAT in assessee’s own case [2017 (12) TMI 1218 - ITAT VISAKHAPATNAM] as passed an order held that the micro finance activity of the assessee falls under the category of ‘relief of the poor’ and not under the category of ‘advancement of any other object of general public utility’ within the meaning of sec.2(15) of the Act. It is accordingly held that the first proviso to sec.2(15) is not applicable to the case of the assessee. Consequently, it is held that the assessee is eligible for exemption u/s 11 of the Act. Hence, the AO is directed to allow exemption u/s 11 of the Act. These grounds of appeal are therefore allowed. Disallowance of capital grant expenses, loans write off expenses, loss on sale of bus, loss on valuation of fixed assets and Gradatim software expenses debited to income and expenditure account in the nature of capital expenditure on the ground that the exemption u/s 11 is denied - HELD THAT:- CIT(A) allowed all the above said five disallowances, since the assessee is entitled for exemption u/s11 of the Act and gave a direction to the AO to delete the additions made on account of the above said five disallowances. The Ld.CIT(A) further stated that, once the assessee is entitled for exemption u/s 11, these disallowances are not warranted. Therefore, we do not find any infirmity in the order passed by the Ld.CIT(A). Thus, we dismiss the ground Nos.3 to 7 raised by the revenue.
|