TMI Blog2018 (8) TMI 2134X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 [ 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 to the AO stating the purpose for which the income is accumulated, period for which the assessee seeks to accumulate, etc. Since Form 10 was not filed, the AO brought to tax income to the extent assessee was not entitled to accumulate. 3. The assessee filed an application u/s. 154 of the Act seeking to rectify the intimation u/s. 143(1) dated 14.01.2016. The assessee in the application u/s. 154 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. However, the same was not submitted at the time of filing return since the return ought to be filed online without annexure. The Assessee poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which has to be rectified U/s. 154 of the Act. 4. The AO, however, rejected the claim of assessee observing as follows:- On verification of the details submitted by you for considering your request for rectification u/s 154 of intimation u/s 143(1) dt 14.01.2016 for the-AY 2014-1.5, it is noticed that for accumulation purpose u/s 11(2), Form 10 was not uploaded electronically before the due date and it was uploaded only after receipt of intimation u/s 143(1). Your application for rectification u/s 154 cannot be considered for the following reasons. 1. As per rule 17 r.w.s 11(2), Form 10 is required to be filed on or before the due date of filing of return of income for corresponding AY but in the above mentioned case, Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd subsequent order u/s 154 of the Act dated 18.11.2016 passed by the AO. The action of the AO is upheld and ground taken by the appellant fails. 6. Aggrieved by the order of CIT(Appeals), the assessee has preferred the present appeal before the Tribunal. 7. We have heard the submissions of the ld. counsel for the assessee and the ld. DR. The ld. counsel for the assessee submitted that as far as AY 2014-15 is concerned, it was not mandatory to furnish Form 10 along with return of income and it was sufficient if the same is furnished before the same is filed before conclusion of the assessment proceedings. The assessee submitted that since intimation u/s. 143(1) is not an assessment, the request of the assessee to accept Form 10 and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case has not given such intimation to the AO. [Para 17] In CIT Vs. Nagpur Hotel Owner s Association [2001] 247 ITR 201 (SC), the Hon ble Supreme Court while dealing with Sec. 11(2) of the Act and Rule 17 of the Rules held that it was abundantly clear from the wordings of sub-s. (2) of s. 11 that it is mandatory for the person claiming the benefit of s. 11 to intimate to the assessing authority the particulars required, under r. 17 in Form No. 10. If during the assessment proceedings the AO does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from s. 11 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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