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2017 (6) TMI 235 - AT - Income TaxExemption u/s 11 - application of income - which the income is being accumulated or set apart - assessee requirement to intimate the A.O. before the date of filing of the return u/s 139(1) - Held that:- Income from trust property will be exempt from tax if 85% thereof is applied for the purpose of the trust. If the application of income falls short of 85% for the reason of non-receipt of income assessee may defer utilization of 85% of the income to another year. For this assessee was required to give notice in writing with the Assessing Officer in the prescribed manner explaining the purpose for which the income is been accumulated and set apart and the period for which the income is to be accumulated and set apart. It has further been provided that the money so accumulated and set apart is to be invested and deposited in specified manner. We find that admittedly assessee has not exercised any such option. Assessee has been all along been claiming that the said income has not accrued. Hence there was no occasion for the Assessing Officer to consider the same. Furthermore, the provisions of the act envisage that the assessee has to explain in the said notice the purpose for which the income is being accumulated or set apart. There is no whisper whatsoever in the assessee's submissions in this regard. Hence we are in full agreement with the learned CIT(A) that there was no occasion for the Assessing Officer to consider this aspect of assessee's plea. As clear from the above discussion, such a plea was not prima facie tenable also. - Decided against assessee.
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