TMI Blog2022 (9) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA Nos. 02 And 03/Rjt/2020 - - - Dated:- 14-9-2022 - Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Assessee : Shri Gaurang Sanghvi, A.R. For the Revenue : Shri B. D. Gupta, Sr. DR ORDER PER BENCH: Both the captioned appeals have been filed at the instance of the assessee against the order of the Ld. Commissioner of Income Tax-(Appeals)-3 (in short the Ld. CIT(A)), Rajkot dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.1 The appellant has filed a detailed written submission as reproduced above. The feet of the matter is that after careful perusal of the intimation sheet u/s. 143(1)(a) it is evident that actually no adjustment has been made by the AO CPC. What has been done in computation of the Income is calculation strictly as per the prescribed set format as per the existing provisions of law. In view of this no interference in the intimation is called for. Without prejudice to the foregoing, I find that only issue whether the deemed income u/s 11(3) would fee eligible for 15% In this regard the assessee has placed reliance on the decision of Calcutta high Court stating that there is no decision of any other High Court on this issue and therefore the decision of Kolkata High Court in favor of the assessee should be followed. However, I find that the issue has been examined In Circular No, 29; R. No. 20/22/CS-IT(AI), dated 23.08.1360 and Circular 5P (LXX-6) of 1968 dated 19.06.1968. In the former Circular it is categorically mentioned that when the amounts are taxed u/s 11(3) the benefit which would have been available to trust in respect of 25% of its income or Rs. 10,000/- u/s. 11(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puted after making the following adjustments:- 1. Any arithmetic error in the return 2. Any incorrect claim apparent from any information in the return shall mean a claim on the basis of an entry, in the return of an item:- o which is inconsistent with another entry of the same or some other item in the income tax return. o in respect of which, information required to be furnished to substantiate such entry, has not been furnished under this Act. o in respect of which a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction. 10. In the present case, the assessee has accumulated a sum of Rs.17 lakhs, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that before taking up the issue involved in the question of law referred to us in this case for consideration, it is necessary to first decide.... whether this Court, while interpreting an all India statute like Income-tax Act, is bound to follow the decisions of any other High Court and to decide accordingly, even if its own view is contrary thereto, because of the practice followed in this Court. Because, if we are to accept this submission, it will be an exercise in futility to examine the real controversy before us.... 13. Be that as it may be, a conjoint reading of the above stated discussion reveals that claim made by the assessee to accumulate the specified deemed income under Section 11(3) of the Act cannot be classified as incorrect claim being an issue of debatable nature. Thus, such adjustment cannot be made in the intimation generated under Section 143(1) of the Act with respect to the issues under consideration being an issue of contentious nature. For this purpose, we also referred the instruction issued by the CBDT bearing No. 1814/1989 dated 04- 04-1989. The relevant extract of the instruction reads as under: In context of the legal position as outlined a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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