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2013 (12) TMI 1002 - ITAT COCHINExemption u/s 11 – Held that:- The amounts were donated to three trusts, viz. Vivekananda Charitable Trust, Cochin Child Foundation and Bethel Educational & Charitable Trust are given to interested persons of the respective trust. In the case of Vivekananda Charitable Trust, the property was taken on lease for running a school. Vivekananda Charitable Trust has also paid franchise deposit for setting up of a school - The deposit and rent paid to lessor for taking the premises on lease was not higher than the market rent. Donation made to Cochin Child Foundation was initially deposited in the commercial space - Principles of law states that when the charitable trust utilises the funds for construction of kalyana mandapam and used the income from kalyana mandapam for charitable activity it would amount to utilisation of funds - Cochin Child Foundation has commercial space for augumenting its income so that the charitable activity can be carried out continuously. Donation to Bethel Educational & Charitable Trust was uitlised for purchase of land from trustees within the Piravom town and the land purchased from outsiders are 5 kms away from Piravom town - It is common knowledge that the land which is situated in town would cost more than the land which is situated 5 kms away from the town - The payment of sale consideration is as per the prevailing market rate and, no benefit was shown to any of the interested person – Decided against Revenue. Valuation of property – Held that:- The fair rent is not a static figure. It may vary depending upon various factors such as the locality of the land, urgency to sell the land, necessity of the purchaser to purchase the land, access to the road, railway station, airport, distance between the land and the public infrastructure facilities available around the area, etc. need to be considered - The land was situated around bypass area. The CIT(A), after taking into consideration that the Cochin bypass road was fully developed during 1976, fixed the fair market value as on 01-04-1981 at Rs.5,000 – Decided against assessee.
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