Sale Of Trust Property To Trustee Below Market Value: ITAT Grants Section 11 Exemption After Full Payment

The ITAT granted Section 11 exemption to a charitable trust that sold property to one of its trustees below market price, holding that exemption applies once full consideration is paid and funds are used for charitable purposes. The tribunal ruled that undervaluation alone does not justify denial of exemption when no personal benefit is proven. It emphasised that trust transactions must be assessed on substance rather than perception, ensuring bona fide charitable intent remains protected under the Income Tax Act.