Allowability of freebies by Pharma Companies to Doctors; ITAT Mumbai refers matter to larger bench

DCIT Vs Macleods Pharmaceuticals Ltd. (ITAT Mumbai) ITAT recommends constitution of larger bench to decide allowability of freebies to medical professionals as a deduction In this case ITAT Mumbai has recommended constitution of a larger bench to decide on whether expenditure for providing freebies to medical professionals can be allowed as a deduction in accordance with Section 37(1) of the Income Tax Act, 1961 (the Act). Macleods Pharmaceuticals Ltd. (“the Respondent”) had preferred an appeal before the Commissioner of Income Tax (Appeals) (“the CIT (A)”) against the order of the Ass...