https://www.taxtmi.com/caselaws?id=801330 Retention money previously included in income and recorded as receivables meets the prior-inclusion condition for bad-debt deduction when actually written off as irrecoverable. Under the post-1989 rule, separate proof that the debt became irrecoverable in the particular year is not required. Related-party rent may be disallowed only to the extent it is excessive or unreasonable against the fair market value of facilities; suspicion, an assertion of lack of revenue neutrality, or absence of comparable evidence does not establish that condition. On those principles, disallowances of the written-off retention money and rent are unsustainable. en-us Mon, 12 Oct 2026 00:00:00 +0530 Mon, 19 Oct 2026 07:01:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801330 Retention money previously included in income and recorded as receivables meets the prior-inclusion condition for bad-debt deduction when actually written off as irrecoverable. Under the post-1989 rule, separate proof that the debt became irrecoverable in the particular year is not required. Related-party rent may be disallowed only to the extent it is excessive or unreasonable against the fair market value of facilities; suspicion, an assertion of lack of revenue neutrality, or absence of comparable evidence does not establish that condition. On those principles, disallowances of the written-off retention money and rent are unsustainable. Case-Laws Income Tax Mon, 12 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801330