Bogus Transaction Addition: ITAT Says Duty Lies on Revenue to Ascertain Whether Bogus Deals Are Genuine Tax Planning or Evasion

The ITAT has stated that the duty lies on the revenue to ascertain whether bogus deals are genuine tax planning or evasion when making bogus transaction additions. The tribunal emphasized that merely identifying a transaction as "bogus" is insufficient; the tax authorities must prove that it was intended for tax evasion and not a legitimate form of tax planning. This ruling places a higher burden of proof on the tax department, requiring a thorough investigation into the intent behind transactions. It safeguards taxpayers from arbitrary additions based solely on the nature of a deal.