Ad-hoc disallowance without specifying vouchers & reasons not allowed

Sheo Bhagwan Goel Vs ACIT (ITAT Raipur) Introduction: The Income Tax Appellate Tribunal (ITAT) Raipur ruled on the case of Sheo Bhagwan Goel vs. ACIT, challenging an ad-hoc disallowance. The contentious issue was the arbitrary addition of Rs 1,70,000, based on a disproportionate increase in freight charges. The lower tax authorities contended that some expenses lacked third-party evidence, relying on self-made vouchers. The appellant argued against the legality of this disallowance, emphasizing the absence of specific details and reasons. Detailed Analysis: Upon scrutinizing the assessment rec...