Disallowance to be made u/s. 37 and not u/s. 69C when genuineness of expense doubted

Arvind Kumar Vs PCIT (ITAT Delhi) ITAT Delhi held that since nature of expense i.e. purchase and source of expense not doubted and only genuineness of expense is doubted, the disallowance has to be made under section 37 of the Income Tax Act and not under section 69C. Accordingly, order of PCIT set aside. Facts- The case of the assessee was reopened u/s 148 of the Act on the basis of the allegation that the assessee had claimed purchases from Kanheya Exports which was not a genuine entity. AO conducted physical verification from supplier and collected statement from the controller of the entit...