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CBDT Circular disallowing expenditure on freebies to medical practitioners is valid
Case Law Details
- Case Name
- Confederation of Indian Pharmaceutical Industry (SSI) Vs . The Central Board of Direct Taxes (CBDT) (Himachal Pradesh High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Himachal Pradesh HC
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The explanation to Section 37(1) makes it clear that any expenditure incurred by an assessee for any purpose which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession. The sum and substance of the circular is also the same. In case the assessing authorities are not properly understanding the circular then the remedy lies for each individual assessee to file appeals under the Income-tax Act but the circular which is totally in line with Section 37(1) cannot be said to be illegal.
In fact para 4 of the circular quoted hereina...
