Addition of 1% Commission to ₹63L Income for Issuing Bogus Sales Bills: ITAT sustains Tax Computation due to No Plausible Explanation

The Income Tax Appellate Tribunal (ITAT) has sustained a tax computation made by the lower authorities, which involved an addition of a 1% commission on an income of Rs 63 lakh that was found to be generated from the issuance of bogus sales bills. The assessee had failed to provide any plausible explanation for the source of this income. The tax department had concluded that the assessee was involved in providing accommodation entries and had estimated the income from this activity as a commission on the total value of the bogus bills. Since the assessee could not offer any credible alternative explanation or evidence to rebut the department's findings, the ITAT upheld the computation. This shows the tribunal's approach of sustaining a reasonable estimation of income when the taxpayer is found to be involved in illicit activities but the exact profit cannot be determined.