https://www.taxtmi.com/caselaws?id=795513 Bad-debt disallowance based on third-party information requires disclosure of the replies and supporting material to the assessee, allowing an effective opportunity to explain or rebut discrepancies. Reliance on unconfronted material breaches principles of natural justice, particularly where the remand report contains inconsistencies requiring factual verification. For bad-debt deduction, the enquiry is limited to whether the debt was written off in the books and whether statutory conditions are satisfied; it cannot be denied merely because the Assessing Officer considers the debt commercially recoverable. The claim requires fresh adjudication after proper disclosure and opportunity of response. en-us Tue, 30 Jun 2026 00:00:00 +0530 Thu, 23 Jul 2026 08:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795513 Bad-debt disallowance based on third-party information requires disclosure of the replies and supporting material to the assessee, allowing an effective opportunity to explain or rebut discrepancies. Reliance on unconfronted material breaches principles of natural justice, particularly where the remand report contains inconsistencies requiring factual verification. For bad-debt deduction, the enquiry is limited to whether the debt was written off in the books and whether statutory conditions are satisfied; it cannot be denied merely because the Assessing Officer considers the debt commercially recoverable. The claim requires fresh adjudication after proper disclosure and opportunity of response. Case-Laws Income Tax Tue, 30 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795513