TMI Blog2021 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... rewithal to approach the nationalized banks for availing loan. If the assessee does not carry on such activity by rendering financial assistance to the women of self help groups, they will have to be under the mercy of the private financiers, who are charging exorbitant rate of interest. Considering all these aspects, the Tribunal granted relief to the respondent assessee. In our considered view, there is no question of law much less substantial question of law arising for consideration in this appeal, as the entire matter is factual and much of the factual position with regard to the genuinity of the assessee have not been disputed either by the Tribunal or the CIT. Revenue submits that the CIT recorded a finding that the interest ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the applicant society was engaged in the business of micro finance by borrowing funds at the rate of 13.5% interest from the banks and lending them to the self help groups at 35%, showing 15% as interest and 20% as service charges, which was nothing but additional interest in the garb of service charges ? And iii. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in ignoring the amendment to Section 2(15) of the Income Tax Act, 1961 brought about by the Finance Act, 2008 wherein it was made clear that the advancement of any other object of general public utility shall not be a charitable purpose if it involves carrying on any activity in the nature of trade, commerce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute the fact that the assessee has been engaged in the business of micro finance for women self help group by obtaining funds from nationalized banks. The reason for rejecting the application for grant of registration under Section 12AA of the Act is solely on the ground that the assessee borrows funds from the nationalized banks, which have lent funds at 13.5% interest on diminishing basis. The funds obtained from the nationalized banks are lent or advanced as loan to the women self help group and interest at the rate of 15% is being charged. Added to that, the CIT pointed out that 20% is being charged as service charges and there are other charges also collected for the purpose of documentation, writing accounts, etc., and taking note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oups, they will have to be under the mercy of the private financiers, who are charging exorbitant rate of interest. Considering all these aspects, the Tribunal granted relief to the respondent assessee. In our considered view, there is no question of law much less substantial question of law arising for consideration in this appeal, as the entire matter is factual and much of the factual position with regard to the genuinity of the assessee have not been disputed either by the Tribunal or the CIT. 9. The learned Senior Standing Counsel appearing for the appellant Revenue submits that the CIT recorded a finding that the interest charged would be 35%. 10. However, we find that there is nothing on record to show that the assessee has c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
