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2018 (3) TMI 1099 - AT - Income TaxDisallowance of expenses claimed under the head of ‘Sales Promotion’ - assessee company paid such amount as “Freebies” to the doctors for prescribing pharmaceutical product of the assessee company - expenses admissible as per instruction No.5/2012 issued by the CBDT - Held that:- During the remand proceedings the assessee submitted nine photographs of medical camps, five certificates and seven hotel bills in support of medical camp organized by it and we note that assessing officer did not find any mistake or irregularity therein. During the remand proceedings, the assessee also explained to the AO that medical camps organized by the assessee required large expenditure inter alia for cost of travelling, reimbursement of cost of conveyance, reimbursement of lodging cost, reimbursement of paramedical persons who attended the camps, cost of chemicals, hire charges of certain equipments and cost of free samples of medicines etc, and the assessing officer failed to bring any evidence that these expenses were not genuine. We note that even otherwise the expenses were not covered by the CBDT Circular No.05/2012, as the expenses were incurred by the assessee for the purpose of business. We note that assessing officer was not justified in applying the guidelines as laid down by CBDT in aforesaid circular in respect of A.Y 2012-13. We note that in subsequent assessment years i.e. in A.Y 2013-14 and in A.Y 2014-15, the assessing officer has allowed the similar claims of the assessee. That being so, we decline to interfere with the order of ld CIT(A) deleting the aforesaid addition. - Decided against revenue
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