Commission on Accommodation Entries Restricted to 2.5%: ITAT Delhi Upholds CIT(A) Order

The ITAT (Income Tax Appellate Tribunal), Delhi, has upheld the CIT(A)'s (Commissioner of Income Tax (Appeals)) order, restricting "commission on accommodation entries to 25%." This ruling deals with cases where individuals or entities obtain "accommodation entries" – fictitious transactions to launder money or evade tax. The tribunal agreed with the CIT(A) that if the full amount of the accommodation entry could not be added back to income, at least a significant portion, here 25%, representing the commission paid for such entries, should be considered as the assessee's undisclosed income.