Expenditure on distribution of freebies & gifts to doctors not allowable

Amay Pharmaceuticals Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)

ITAT held that when the acceptance of gifts and freebies by the doctors itself was prohibited by law, the expenditure incurred by the assessee-pharmaceutical company in distribution of such gifts and freebies to the doctors is clearly hit by Explanation I to Section 37(1) of the Act as held by the Hon’ble Supreme Court in the case of Apex Laboratories (P.) Ltd. (supra) and the assessee­ company, therefore, is not entitled for deduction on account of expenditure incurred on distribution of fr

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