9911796707
TMI Blog2022 (4) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred confirming the action of assessing officer in imposing penalty of Rs. 2,63,342/- u/s 271(1)(c) of the I.T. Act, 1961. 2. It is therefore prayed that penalty imposed by assessing officer and confirmed by Commissioner of Income-tax (Appeals) may please be deleted. 3.Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that the assessee filed its return of income for Assessment Year 2004-05 declaring total income of Rs. 23,42,830/- on 31.10.2004. The case was selected for scrutiny and the assessment was completed under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has willfully attempted to evade the tax to the extent of Rs. 7,34,054/- by furnishing inaccurate particulars of income. The Assessing Officer levied penalty @ 100% of tax bill audit. The Assessing Officer worked out penalty of Rs. 2,36,342/- in his order dated 15.03.2016. 4. Aggrieved by the order of the Assessing Officer levying penalty, the assessee filed before CIT(A). Before the ld. CIT(A), the assessee filed detail written submission. In the submission, the assessee submitted that during the assessment proceedings, the assessee furnished the ledger account, bank statement and copy of income tax return of parties to whom commission was paid. The assessee deducted tax from the commission paid and was deposited in Government treasu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Reliance Petroproducts (P) Ltd. reported at (2010) 322 ITR 158 (SC) and National Textiles vs. CIT reported at (2001) 249 ITR 125 (Guj.). 6. The ld. CIT(A) after considering, the submission of assessee held that assessee could not establish that the services were rendered even when afforded multiple opportunities. It was also held that this is not a case of bonafide or wrong claim of deductions but a case of furnishing inaccurate particulars in order to inflate commission expenses and that the case laws relied by the assessee are not applicable on the facts of represent case. Further, aggrieved, the assessee has filed present appeal before this Tribunal. 7. We have heard both the submissions of Learned Authorized Representative (ld. AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Tribunal, the addition was upheld with the observations that assessee could not establish the actual services rendered by the commission agent. 8. The ld. AR of the assessee submits that the payment of commission was not disputed by the lower authorities. It was disallowed only by taking view that it was in excess compared to earlier year as the assessee could not prove the actual service rendered by commission agent. No independent investigation was carried out by the lower authorities. The assessee deducted tax before making payment of commission. Mere the assessee could the prove the actual services rendered by the commission recipient, disallowance would not attract levy of penalty u/s 271(1)(c) of the Act. The assessee has neith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has not been disputed. Thus, no penalty is levieable against the assessee. 12. We have considered the submission of both the parties and have gone through the order of lower authorities. There is no dispute about the commission payment. The assessee deducted tax at source. During the assessment proceedings, the assessee provided the name of the parties, their PAN, details of commission payment of TDS deducted. We find that no investigation was carried out by the Assessing Officer on the evidences furnished by the assessee to disprove the same. There is no dispute that initially, on appeal before ld. CIT(A), the assessee was allowed relief. However, on further appeal by revenue before Tribunal, the matter was restored back to the file of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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