No section 40A(3) disallowance if AO not doubted genuineness of expenses

Kedar Nath Sawhney Vs ACIT (ITAT Delhi) The assessee in terms of its contract is bound to deliver the goods within the stipulated time. In the course of such transportation, the assessee is bound to incur expenses for putting fuel in the vehicle, payment of toll gate charges, incurring of expenses for routine and exceptional repairs and maintenance apart from fooding expenses of the staff. Since the AO has not doubted the genuineness of the expenses as no such disallowance has been made and the AO has made only disallowance u/s 40A(3) of the Act on the basis of the bills/vouchers/ledger accoun...