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2019 (7) TMI 862 - AT - Income TaxDisallowance of sales promotion expenses - distribution of costly articles /freebies to doctors and professionals - violation of CBDT circular no. 5/2012 dated 01.08.2012 and are against regulations issued by Medical Counsel of India - HELD THAT:- In this view of the matter and consistent with view taken by the coordinate bench in assessee’s own case for AY 2011-12 M/S ARISTO PHARMACEUTICALS PVT. LTD. VERSUS ASST. CIT-2 (1) MUMBAI AND VICE-VERSA [2018 (7) TMI 1883 - ITAT MUMBAI] wherein it was held that in the absence of any sanction or authority of law on the basis of which it could safely be concluded that the assessee company which is engaged in the business of manufacturing and sale of pharmaceuticals and allied products, had in the garb of sales promotion expenses incurred expenditure in respect of articles distributed to the stockists, distributors, dealers, customers and doctors, for a purpose which is either an offence or prohibited by law, are thus of the considered view that such expenditure incurred by the assessee would not be hit by the Explanation to Sec. 37(1) We are of the considered view that there is no error in the findings recorded by the Ld.CIT(A) insofar as deletion of addition made by the AO towards sales promotion expenses and hence, we are inclined to uphold the findings of the CIT(A) and dismiss the appeal filed by the revenue. - Decided in favour of assessee.
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