TMI Blog2018 (5) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of expenses incurred by the assessee is not clear i.e. whether the same has been incurred to sponsor foreign visits of doctors to attend seminars or conferences relating to assessee’s products or whether the same are in the nature of freebies to the doctors. In our opinion, the expenditure incurred by the assessee to sponsor foreign visit to generate knowledge about the company’s products was clearly allowable u/s 37(1) and there was no restriction per-se regarding allowability of the same. Therefore, the matter stands remitted back to the file of Ld. AO for appreciation of the factual matrix and to be decided as per law after providing opportunity to the assessee to demonstrate the nature of these expenses. Disallowance of depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Hon’ble Bombay High Court rendered in Harshad J Choksi Vs CIT [2012 (8) TMI 710 - BOMBAY HIGH COURT]. Respectfully following the same, the impugned addition is deleted. Trading advances (bad debts) written off - Held that:- We find that since the said disallowance has been made by lower authorities for want of adequate information / details, the issue needs to be remitted back to the file of Ld. AO in the light of additional evidences submitted by the assessee hat the impugned expenditure was nothing but bad debts written-off and hence allowable in terms of decision of Hon’ble Apex Court rendered in TRF Ltd. Vs. CIT [2010 (2) TMI 211 - SUPREME COURT ]. - I.T.A. No.7555/Mum/2012 - - - Dated:- 4-5-2018 - SHRI MAHAVIR SINGH, JM AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. In this backdrop, we proceed to adjudicate the issues raised in the appeal. 3.1 Ground No. 1 is general is nature. Ground numbers 2 to 13 are related with Transfer Pricing [TP] adjustment of ₹ 13.53 Crores against Advertising, Marketing Sales Promotion Expenses [AMP] . The Ld TPO, in his order u/s 92CA(3) dated 28/10/2011, noted that the assessee s AMP expenditure amounting to ₹ 42.53 Crores constituted approx. 15.49% of the turnover in distribution segment as against average of 4.89% reflected by six comparables. Therefore, by applying Bright Line Test [BLT] , Ld. TPO had suggested TP adjustment of ₹ 29.10 crores against the same. The Ld. DRP provided certain relief to the assessee on account of exclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduce the relevant portion of the order of the Thomas Cook(supra),wherein the identical issue has been dealt in length, and it reads as under: . Considering the above, we decide the first effective ground of appeal (GOA-1-16) in favour OF the assessee. Since a view has already been taken by the Tribunal on the issue, respectfully following the judicial discipline, we delete the impugned adjustment. Resultantly, Ground No. 2 stands allowed whereas ground numbers 3 to 13 become infructuous . 4. Ground Numbers 14 5 are not being pressed by Ld. AR and therefore, the same stands dismissed in limine. 5. Ground Numbers 16 17 are related with expenditure of ₹ 49,15,181/- incurred by assessee in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rusal, we find that the nature of expenses incurred by the assessee is not clear i.e. whether the same has been incurred to sponsor foreign visits of doctors to attend seminars or conferences relating to assessee s products or whether the same are in the nature of freebies to the doctors. In our opinion, the expenditure incurred by the assessee to sponsor foreign visit to generate knowledge about the company s products was clearly allowable u/s 37(1) and there was no restriction per-se regarding allowability of the same. Therefore, the matter stands remitted back to the file of Ld. AO for appreciation of the factual matrix and to be decided as per law after providing opportunity to the assessee to demonstrate the nature of these expenses. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the nature of these expenses as filed before us, we find that advances are primarily in the nature of advance for shipping handling charges, advertising material, freight, packing, hotel booking, project hiring, consultancy charges, booking charges etc. which are primarily in relation to business activities carried out by the assessee in normal course of business and hence, allowable as Business Loss u/s 28 as per the decision of Hon ble Bombay High Court rendered in Harshad J Choksi Vs CIT [254 ITR 499] . Respectfully following the same, the impugned addition is deleted. 9. Ground No. 21 is related with trading advances (bad debts) written off for ₹ 67,05,411/-. The Ld. AR drew our attention to the additional eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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