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2013 (12) TMI 294 - ITAT BANGALOREBad debts written off – Held that:- Prior to April 1, 1989, the assessee had to establish the debts have become bad and cannot be recovered in any case but after amendment to section 36(1)(vii) – The word “establish” has been deleted - Following T. R. F. LTD. v. CIT [2010 (2) TMI 211 - SUPREME COURT] - The assessee need not to establish that the debt has become irrecoverable. It is enough that the bad debt is written off as irrecoverable in the accounts of the assessee – The assessee has filed all the details showing break-up of amounts written and the services rendered to them - Decided against Revenue. Legal and professional charges paid to director of company – Held that:- There was a consultancy agreement and the payment in question prima facie is a payment for professional services rendered and could not be treated as a payment of salary - Once commercial expediency of a payment is accepted and TDS has been effected, the deduction will have to be allowed – The provisions of section 192 being outside the purview of section 40(a)(ia) - Decided against Revenue.
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