ITAT Upholds Deletion of Bogus LTCG Addition, Rules No Evidence of Tax Evasion in Share Transactions

The ITAT (Income Tax Appellate Tribunal) has upheld the deletion of a bogus Long-Term Capital Gains (LTCG) addition, ruling no evidence of tax evasion in share transactions. This significant decision provides relief to taxpayers facing scrutiny over share market gains. The ITAT found that merely alleging bogus transactions without concrete proof of manipulation or circular trading is insufficient to disallow LTCG, especially when transactions are routed through recognized stock exchanges. This ruling emphasizes the burden of proof on the tax department to substantiate claims of tax evasion, ensuring fairness in assessments related to capital market gains.