#expense disallowance

The ITAT Bangalore has ruled that for bad debt deduction under Section 36(1)(vii), a mere book write-off by the assessee is sufficient - no proof of borrower default, recovery attempts, or debtor identification is mandatory. This clarifies a critical compliance standard for businesses and lenders, shielding them from arbitrary disallowances based on procedural overreach by tax authorities.

ITAT Mumbai rules that consultancy receipts cannot be treated as unexplained income under Section 69 without evidence of illegality. Only expenses proven unverifiable-not the entire amount-are disallowed, protecting taxpayers from arbitrary additions.