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2018 (8) TMI 2134 - AT - Income TaxExemption u/s 11 disallowed - intimation u/s. 143(1) - AO disallowed the claim of assessee for exemption u/s. 11(2) for the reason of non-filing of Form 10 u/s 11(2) as 85% of the income of a charitable trust has to be applied for charitable purposes - assessee filed an application u/s. 154 seeking to rectify the intimation u/s. 143(1) contended that in the original return filed for the A.Y 2014-15, the fact of accumulation of income u/s 11(2) was mentioned. The appellant had already prepared an application for accumulation in Form 10 - assessee submitted that since intimation u/s. 143(1) is not an assessment, the request of the assessee to accept Form 10 and allow accumulation ought to have been accepted and intimation u/s. 143(1) rectified - HELD THAT:- As relying on Bagalkot Town Development Authority [2014 (7) TMI 91 - ITAT BANGALORE] following NAGPUR HOTEL OWNERS ASSOCIATION case [2000 (12) TMI 99 - SUPREME COURT] that intimation required u/s 11 has to be furnished before the assessing authority completes the concerned assessment. In the present case, there was no assessment proceeding and there is only intimation u/s. 143(1) of the Act. An intimation u/s. 143(1) is not an assessment as laid down in the case of Rajesh Jhaveri Stock Brokers [2007 (5) TMI 197 - SUPREME COURT] - In view of the legal position as explained above, we are of the view that the AO ought to have accepted the application for rectification u/s. 154 of the Act. We accordingly direct the AO to allow application u/s. 154 of the Act and rectify the intimation. Appeal by the assessee is allowed.
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