ITAT quashes Rs.6.99 Crore Presumptive Addition on Share Transfer due to lack of evidence

The Income Tax Appellate Tribunal (ITAT) quashed a presumptive addition of Rs. Crore related to a share transfer, citing a lack of sufficient evidence. The tax authorities had added this amount to the taxpayer's income, claiming that the transfer of shares involved a disproportionate amount. However, the ITAT found that the tax department had not provided adequate evidence to support its presumptive addition. The tribunal emphasized that the mere suspicion of tax avoidance was not enough to justify such an addition. This ruling underscores the importance of strong evidence when making presumptive additions to income. It also highlights the need for the tax authorities to base their assessments on concrete and verifiable evidence rather than assumptions, providing relief to taxpayers in similar situations.