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2022 (9) TMI 722 - AT - Income TaxAdjustment in the intimation specified u/s 143(1) - debatable issues - Assessment of trust - Deemed income u/s 11(3) - assessee is public charitable trust and duly registered under Section 12A - HELD THAT:- In the present case, the assessee has accumulated a sum representing the deemed income under Section 11(3) of the Act, in pursuance to the provisions of Section 11(2) of the Act. The first question arises whether the assessee can again accumulate the deemed income under the provisions of Section 11(3) of the Act in the manner as provided under Section 11(2) of the Act. Assuming the answer stands in negative, the next question arises whether such adjustment/denial of accumulation of the deemed income, can be made in the intimation generated under Section 143(1) of the Act. Undoubtedly, the scope of adjustments under the provisions of Section 143(1) of the Act is limited to the extent of the items as described above. In the case of CIT vs. Natwarlal Chowdhury Trust [1989 (8) TMI 19 - CALCUTTA HIGH COURT] held that the assessee is entitled to accumulate 15% of the total income which is inclusive of the deemed income specified under Section 11 (3) of the Act. Thus, from the above judgment, it is transpired that the assessee can claim the benefit of accumulation even on the deemed income specified under the provisions of Section 11(3) of the Act. However, the Ld. CIT-A in his order has not pointed out any distinguishing features in the case on hand viz-a-viz in the judgment of Hon’ble Calcutta High Court as discussed above. Thus the issues which are of debatable nature cannot be made subject to adjustment in the intimation specified under Section 143(1) of the Act. Accordingly, we set aside the finding of the Ld. CIT-A and direct the AO to allow the claim of the assessee.
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