2016 (7) TMI 1672

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..... the persons in support of claim of payment of commission because no request under Rule 46A of the Income Tax Rules was made - HELD THAT:- Though the findings given in the quantum proceedings are relevant and have probative value but these are not conclusive for levy of penalty against the assessee under section 271(1)(c) - It is well settled that the quantum and penalty proceedings are distinct and independent proceedings. Assessee in the penalty proceedings still could have explained that it is not a case of levy of penalty based on the evidence on record. Hon'ble Supreme Court in the case of Tek Ram Vs. CIT [ 2013 (8) TMI 459 - SC ORDER] and case of CIT Vs. Mukta Metal Works [ 2011 (2) TMI 250 - PUNJAB AND HARYANA HIGH COURT] ad .....

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..... levied, which was also confirmed by the CIT (Appeals). 3. I have heard the learned representatives of both the parties. It is stated that the assessee is a LIC agent and claimed deduction on account of commission paid to several persons, who have procured new LIC policies from different persons. The addition was made because the assessee could not adduce complete details and list of the persons to whom commission was paid. The assessee has now filed application for admission of additional evidence, in which it is stated that the list of sub-agents and their affidavits alongwith names of the parties who had been introduced by each sub-agents alongwith list was filed as additional evidence. The assessee prayed that the same may be admitte .....

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..... ) admitted the additional evidence being relevant and required to be looked into. The addition was made by the authorities below because the assessee could not produce the complete list of the persons to whom commission was paid and no evidence was adduced in this regard. The assessee has now filed affidavits of nine persons to whom the assessee had paid the commission alongwith list of the parties in respect of whom LIC policies were obtained through the commission agents. These additional evidences are, therefore, relevant and shall have to be looked into in order to decide whether the assessee is able to explain the issue for the purpose of levy of penalty. In this view of the matter, I admit these additional evidences for the purpose of .....

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