https://www.taxtmi.com/highlights?id=96146 Capitalization of expenses debited to profit and loss and later treated as project cost cannot be disallowed where assessing officer failed to verify documentary evidence and ignored audited financial statements; matter should be remanded for limited verification and enquiry and disallowance is not sustained. Where a creditor writes off a debt, unilateral write-off does not automatically extinguish the assessees liability absent bilateral settlement or clear remission; reliance solely on the creditors action without evidence of discharge violates principles of continuing liability and natural justice, so cessation-based disallowance is not attracted. en-us Mon, 19 Jan 2026 07:36:44 +0530 Mon, 19 Jan 2026 07:36:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=96146 Capitalization of expenses debited to profit and loss and later treated as project cost cannot be disallowed where assessing officer failed to verify documentary evidence and ignored audited financial statements; matter should be remanded for limited verification and enquiry and disallowance is not sustained. Where a creditor writes off a debt, unilateral write-off does not automatically extinguish the assessees liability absent bilateral settlement or clear remission; reliance solely on the creditors action without evidence of discharge violates principles of continuing liability and natural justice, so cessation-based disallowance is not attracted. Highlights Income Tax Mon, 19 Jan 2026 07:36:44 +0530 https://www.taxtmi.com/highlights?id=96146