https://www.taxtmi.com/caselaws?id=205029 Treaty non-discrimination under Article 26(3) of the India-USA tax treaty required payments to non-resident card companies to be deductible on the same conditions as comparable payments to residents. Because comparable resident payments could not be disallowed for failure to deduct tax at source under the law applicable for the relevant year, disallowance under section 40(a)(i) was unsustainable and the deduction was allowed. For bad debts, section 36(1)(vii) must be read with the separate provision for scheduled banks' bad-debt reserves under section 36(1)(viia). As the record did not establish whether written-off debts related to rural or non-rural advances, the claim required fresh factual examination by the Assessing Officer. en-us Fri, 24 Sep 2010 00:00:00 +0530 Wed, 08 Aug 2012 14:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205029 Treaty non-discrimination under Article 26(3) of the India-USA tax treaty required payments to non-resident card companies to be deductible on the same conditions as comparable payments to residents. Because comparable resident payments could not be disallowed for failure to deduct tax at source under the law applicable for the relevant year, disallowance under section 40(a)(i) was unsustainable and the deduction was allowed. For bad debts, section 36(1)(vii) must be read with the separate provision for scheduled banks' bad-debt reserves under section 36(1)(viia). As the record did not establish whether written-off debts related to rural or non-rural advances, the claim required fresh factual examination by the Assessing Officer. Case-Laws Income Tax Fri, 24 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205029