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2016 (7) TMI 1672 - AT - Income TaxLevy of penalty u/s 271(1)(c) - non admission of additional evidences - deduction on account of commission paid to several persons who have procured new LIC policies from different persons - addition was made because the assessee could not adduce complete details and list of the persons to whom commission was paid - 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 - CIT (A) did not consider these nine affidavits of 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] admitted the additional evidence being relevant and required to be looked into. We admit these additional evidences for the purpose of hearing - contention of the D.R. that same additional evidences were not admitted by the CIT (Appeals), has no merit because the assessee did not make any request under Rule 46A of the Income Tax Rules for admission of the additional evidence. These additional evidences so admitted would have bearing on the issue and could explain the matter in issue with reference to the penalty matter We set aside the orders of the authorities below and restore the issue of levy of penalty to the file of the Assessing Officer with direction to redecide the issue in the light of additional evidence so admitted above - Appeal of the assessee is allowed for statistical purposes.
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