An operator such as ==, !=, &&, and || that results in a boolean value will evaluate to 1 of the expression is true and 0 if the expression is false. The type of this expressing is int.
So if the TRUE macro is not defined as 1, a comparison such as the above will fail.
When an expression is evaluated in a boolean context, 0 evaluates to false and non-zero evaluates to true. So to be safe, TRUE should be defined as:
#define TRUE (!0)
As was mentioned in the comments, if your compiler is C99 compliant, you can #include <stdbool.h> and use true and false.
According to C99:
6.5.3.3 (Unary arithmetic operators)
The result of the logical negation operator ! is 0 if the
value of its operand compares unequal to 0, 1 if the value of its
operand compares equal to 0. The result has type int. The
expression !E is equivalent to (0==E).
6.5.8 (Relational operators)
Each of the operators < (less than), > (greater than), <=
(less than or equal to), and >= (greater than or equal to)
shall yield 1 if the specified relation is true and 0 if it is false.
The result has type int.
6.5.9 (Equality operators)
The == (equal to) and != (not equal to) operators are
analogous to the relational operators except for their lower
precedence. Each of the operators yields 1 if the specified
relation is true and 0 if it is false. The result has type
int.
6.5.13 (Logical AND operator)
The && operator shall yield 1 if both of its operands compare
unequal to 0; otherwise, it yields 0. The result has type int.
6.5.14 (Logical OR operator)
The || operator shall yield 1 if either of its operands compare
unequal to 0; otherwise, it yields 0. The result has type int.