Addition unsustainable on AO being failed to provide any evidence of cash sales

S.J. Studio & Entertainment Ltd. Vs ACIT (ITAT Mumbai)

ITAT Mumbai held that when assessee submits the sales to be fictitious sales, the onus is on AO to prove that such sales were cash sales as claimed by him. Addition unsustainable as AO failed to provide any evidence of cash sales.

Facts- Post survey proceedings, assessee explained that profit was on higher side due to one sales entry in the name of XYZ amounting to total Rs. 81,07,050/-. It was explained that said XYZ is fictitious, non-existent entity and said entries were made for the purpose of showing increase in turnover for presenting to the bank for the purpose of availing loan for expansion of studio.

AO rejected the contention of the assessee and held that the same were actual sales which were intended to keep out of books.

CIT(A) also rejected the contention of the assessee. Being aggrieved, the present appeal is filed.

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