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2017 (2) TMI 1336 - ITAT NEW DELHIDisallowing HRA paid to Managing Director as excessive in nature - Held that:- It is observed that it is in assessee's own case accountable High Court [2013 (7) TMI 1104 - DELHI HIGH COURT] has allowed the commission paid to the managing director for the services rendered as per the terms of the employment. As the revenue has not brought any distinguishing factor to deviate from the decision of Hon'ble High Court, respectfully following the same we dismiss ground No. 1 raised by revenue. Addition on account of foreign travelling expenses treating the same as personal in nature - Held that:- CIT(A) on verification of the details have observed that none of the family members has been accompanying directors. There has been no contrary evidence is that has been brought on record by Ld. AO regarding any personal touch to the foreign travel expenses. It appears that Ld. AO without there being cogent material has made addition on mere surmises. Accordingly, we are inclined to uphold the findings of Ld. CIT(A) in deleting the addition Addition credit balance written back - Held that:- The only requirement for allowability of the bad debts is that the assessee should write off the bad debts as irrecoverable in its accounts in the relevant year. Admittedly, the assessee has written off the bad debts to the extent of ₹ 2,59,041/- by way of debit to the profit & loss account.In this case, debit to the profit & loss account was only for ₹ 2,59,041/- while the Assessing Officer made the disallowance of ₹ 9,35,706/-, at the same time also making separate addition for the cessation of liability. Be that as it may, we are of the opinion that the assessee is entitled to the deduction of bad debts in view of the above decision of Hon'ble Apex Court in the case of T.R.F. Limited. [2010 (2) TMI 211 - SUPREME COURT] - Decided against revenue Addition in respect of HRA paid to the Managing Director as excessive in nature - Held that:- HRA paid to the directors will be considered as perquisites in the hands of Directors. There cannot be evasion of tax as the directors are paying tax on the perquisites received. We are setting aside this issue to Ld. AO to verify whether such income has been treated as prerequisite in the hands of the Directors and to allow the same in the hands of assessee. Ground raised by the assessee stands allowed for statistical purposes.
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