Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 527 - AT - Income TaxAllowable expenditure - Business promotion expenditure incurred on doctors - doctors were neither the employees nor the agents of the assessee - Held that: - The Learned CIT(Appeals) erred in upholding the disallowance of Rs. 2,78,460 on the ground that the business promotion expenses incurred on the doctors which were admittedly neither the employee nor the agent of the assessee-company - The assessee has demonstrated that on account of the training of these two doctors, the company has directly been benefited because these doctors themselves have purchased and sponsored machineries/equipments respectively - Not only that, they have promoted the sales by convincing other professionals but also made them aware about the product hence in a way created a better market for future - The assessee has explained that since the assessee is in trading of Ophthalmic and Orthopaedic equipments, therefore, the expenditure incurred was wholly and exclusively for the purpose of business, hence, allowable u/s 37 of the Income-tax Act, 1961 - The assessee has established the genuineness of the expenditure, plus demonstrated its connectivity of the business of the assessee - The revenue has wrongly appreciated the facts of the case, therefore, their view is hereby reversed and we accordingly direct to allow the claim of the expenditure - Hence, the appeal of the assessee is allowed.
|