AO cannot disallow tanker expenses on ad-hoc basis without justification: ITAT Raipur

Rajnandgaon Petrol Service Vs ACIT (ITAT Raipur)

Conclusion: Disallowance of tanker transport expenses was not justified as AO had failed to place on record any material which would prove to the hilt that assessee had either raised a bogus claim of expenditure; or that the said expenditure was not incurred wholly and exclusively for the purpose of business; or that the expenditure so claimed as a deduction did not fall within the four parameters of Section 37.

Held: AO observed that assessee-firm which was running a petrol pump under the nam

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