ASSESSMENT PROCEEDING OF I.T. ACT

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SITUATION 1 : PERSON WORKING AS A COMMISSION AGENT OF BANK AND HE IS PAYING COMMISSION TO OTHER PERSONS.  IN SUCH SITUATION SUPPOSSE IF HE RECEIVED COMMISSION FROM BANK IS 60 LACS HE HAS PAID COMMISSION TO OTHER PERSONS IS 38 LACS. FURTHER PERSONS TO WHOM HE HAS PAID COMMISSION ARE IN LARGE NUMBER (60 NOS ) AND MANY ARE NOT TRACABLE NOW. THOUGH HE HAS PAID COMMISSION BY A/C PAYEE CHEQUE ONLY. IN CASE OF ASSESSMENT PROCEEDING IF I.T.O WANT TO ISSUE NOTICE U/S 133(6) TO CHECK GENUINNESS OF THE TRANSACTIONS AND ASSESSEE IS UNABLE TO PROVIDE ALL THE PARTIES ADDRESS, WHAT REMEDY AVAIALBLE TO ASSESSEE? KINDLY GUIDE WITH SOME CASE LAW. WHAT KIND OF LEGAL GROUND CAN BE TAKEN IF ASSESSEE UNABLE TO PROVIDE ADDRESS OF THE PARTIES.

SITUATION 2 : IN ABOVE STATED SAME SITUATION IF ASSESSEE HAS ALREADY TAKEN 70 TO 80 % CONFIRMATION FROM PARTIES WITH THEIR PAN CARD AND FURNISHED TO I.T.O. EVEN THOUGH IF I.T.O WANT TO ISSUE 133(6) TO THE PARTIES TO WHOM COMMISSION HAS BEEN PAID AND ASSESSEE IS NO HAVING ADDRESS OF THE PARTIES. WHAT LEGAL GROUD CAN BE TAKEN BEFORE ITO. IF RELEVANT JUDGEMENT IS THERE, PLEASE PROVIDE.

AI Summary

Commission Agent Struggles with Untraceable Payees During Income Tax Assessment under Section 133(6) A commission agent working for a bank faces an issue during an assessment proceeding under the Income Tax Act. The agent received a commission of 60 lakhs and paid 38 lakhs to 60 other individuals, many of whom are now untraceable despite payments being made via account payee cheques. The agent seeks guidance on legal remedies if unable to provide addresses for these individuals when the Income Tax Officer (ITO) issues notices under Section 133(6) to verify transaction authenticity. The response emphasizes the agent's responsibility to prove the genuineness of claims by providing payee identities and addresses, as the ITO is entitled to verify such claims.