Freebies to Doctors- CBDT circular not applies to gift to traders & distributors

DCIT Vs Medi Sales India Pvt. Ltd. (ITAT Chennai) Issue– Disallowance by the AO by not allowing assessee’s claim holding that the CBDT Circular No. 5/2012 dated 01.08.2012 applies only to pharmaceutical manufacturers and not to distributors like the assessee. Upon careful consideration of material facts, it could be gathered that the assessee merely acts as a trader and distributor of generic medicines. It sells goods to traders and small distributors and to incentivize the chain, it offers gifts which are in the shape of gold items and novelties. There is no evidence on record that th...