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2018 (4) TMI 1869 - ITAT DELHIAdmissibility of expenditures incurred by the assessee (a pharmaceutical company)u/s 37 - Disallowance on account of marketing expenses - AO noticed that the marketing expenses included gift to the Doctors which was in violation to the provisions of Indian Medical Council (Professional conduct Etiquettes and Ethics) Regulations 2002 issued by M.C.I. and circular No. 5/2012 dated 12.8.2012 issued by CBDT - HELD THAT:- Since the facts of the assessee’s case are similar to the facts involved in the aforesaid referred case of DCIT vs. PHL Pharma Private Limited [2017 (1) TMI 771 - ITAT MUMBAI] there is no violation by the assessee in so far as giving any kind of freebies to the medical practitioners. Thus, such kind of expenditures by a pharmaceutical companies are purely for business purpose which has to be allowed as business expenditure and is not impaired by EXPLANATION 1 to section 37(1). - Decided in favour of assessee So respectfully following the said order, the impugned disallowance made by the AO and sustained by the learned CIT(A) is deleted. - Decided in favour of assessee.
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