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-existe

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