Entire expense cannot be held as non-genuine if some parties failed to respond to AO’s notice

ACIT Vs Pushparaj Corporation (ITAT Ahmedabad) ITAT Ahmedabad held that merely because some parties didn’t respond to the notice of AO, entire expenditure cannot be held as non-genuine. Accordingly, deletion of addition by CIT(A) upheld. Facts- In the course of assessment, AO noticed that the assessee had claimed expenditure of Rs.5.96 Crores under the head “purchase” and Rs.3.46 Crores under the head “direct expense” in Schedule-14 of the Profit & Loss account, the details of which was called for and examined. On verification of the details of the expenses, the AO found that the...