“Section 10(2)(vii)”

A provision for doubtful debts cannot be added back while computing book profits under Section 115JB of the Income-tax Act for Minimum Alternate Tax (MAT) purposes.

A composite agreement, even if charges are broken down, cannot be dissected to apply Section 194I for TDS on rent when the agreement is a business arrangement for mutual obligations.

An Indian company that exercises control and supervision over a seconded employee and bears the salary cost is an economic employer. Such a company is not liable to withhold tax on the reimbursement of salary to the overseas company, thereby avoiding disallowance under Section 40(a)(i).

The provision of section 36(1)(vii) prior to April 1, 1989, and post amendment does not require an assessee to prove that a debt has become irrecoverable; mere write-off in accounts is sufficient.

Expenditure not covered by a specific provision for deduction should be allowed under the residuary clause if it is in the nature of revenue expenditure.

A loss arising from embezzlement by an employee is considered a trading loss deductible under the Income Tax Act, irrespective of its nomenclature as a bad debt or trading loss, provided it is written off in the books of account in the relevant year.

In identical circumstances, the provision made by an assessee for bad and doubtful debts is accepted if a co-ordinate bench of the Tribunal has accepted a similar provision in the assessee's own case, and this method has been approved by a High Court.

A case is factually distinguishable if the 'made available' specifications and procedures enabled the assessee to render services independently to its customers.