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2018 (4) TMI 1813 - AT - Income TaxDisallowance of business promotion expenses u/s 37 - CIT(A) was of the view that an amount incurred in connection with installation of stall and participation fees are allowable and the remaining expenses was not allowable in view of the Explanation-1 of Section 37(1) - HELD THAT:- CIT(A) was of the view that these fees are for participation fees and installation of stall which was not prohibited by the Medical Council Act. So far as the remaining claim of the assessee is in connection with the expenses is concerned, the claim of the assessee is that the said expenses is not required to be allowed on the basis of the Circular No.5 of 2012 dated 01.08.2012 issued by the Central Board of Direct Taxes, New Delhi vide F.No.225/142/20120-ITA-11which was prospective in nature. It is not in dispute that the present assessment year is for the A.Y. 201112 Circular No. 5 and of 2012 dated 01.08.2012 issued by the Central Board of Direct Taxes, New Delhi vide F.No.225/142/20120-ITA-11 and was applicable prospectively for the A.Y. 2013-14 onwards. Order passed by the PT. VISHWANATH SHARMA [2008 (2) TMI 423 - ALLAHABAD HIGH COURT] is only deals with the commission expenses whereas no such issue is in question in the present case. Now, coming to the applicability of the circular dated 01.08.2012 is concerned, we are of the view that the same is not applicable retrospectively and in this regard we are also finding support in law settled in DCIT Vs. PHL Pharma (P.) [2017 (1) TMI 771 - ITAT MUMBAI]. Accordingly, we are of the view that the expenses are allowable, therefore, we decide this issue in favour of the assessee against the revenue.
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