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2017 (12) TMI 996 - AT - Income TaxAddition of incurred advertisement, sales promotion, entertainment, travelling, business and miscellaneous expenses on doctors and business guests - prohibition on the doctors and medical practitioners from receiving gifts, freebies from the pharmaceutical companies/ individuals - Held that:- We set aside the orders of the authorities below and allow the claim of the assessee. We make it clear that the AO has not doubted the genuineness of the expenditure incurred by the assessee but the disallowance was made by the AO only on the ground that the said expenditure is hit by the explanation to Section 37(1) being prohibited by the MCI Regulations, 2002 issued on 10.12.2012 w.e.f. 14.12.2012 and consequently CBDT Circular no. 5/2012 dated 01.01.2012. Thus, when the genuineness of the expenditure is not doubted then the claim of the assessee cannot be disallowed in view of the binding precedent of Hon’ble jurisdiction High Court in case of Dr. Anil Gupta Vs. ACIT [2017 (12) TMI 931 - RAJASTHAN HIGH COURT] - Decided in favour of assessee.
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