It is to the point, showing intelligence (3)
I believe the answer is:
wit
'intelligence' is the definition.
(wit is a kind of intelligence)
'it is to the point' is the wordplay.
'is to' means one lot of letters go next to another (I've seen this in other clues).
'the point' becomes 'w' (W is an example**).
'it' after 'w' is 'WIT'.
'showing' acts as a link.
(Other definitions for wit that I've seen before include "Ingenuity; wag" , "Intelligence; humorist" , "card" , "Repartee" , "Funny person" .)