Case Law Details
Mankind Pharma Ltd Vs DCIT (ITAT Delhi)
The issue in the present ground is with respect to the disallowance of sale promotion expenses of Rs.1,06,78,600/- by holding it to be covered by Explanation of Section 37(1) of the Act. We find that Hon’ble Apex Court in the case of Apex Laboratories Pvt. Ltd. (supra) has held that acceptance of freebies by medical practitioners was punishable as per Circular issued by Medical Council of India under MCI Regulations, 2022, gifting of such freebies to medical practitioners would also be prohibited by law and therefore expenditure incurred in distribution of freebies would not be allowed as deduction in view of Explanation – 1 to Section 37(1) of the Act. Before us, no contrary binding decision in its support has been placed by assessee. Further, before us, Learned AR has also admitted that the issue in the present appeal is covered against the assessee by the decision of aforesaid Apex Court. In such a situation, we do not find any reason to interfere with the order of CIT(A). Thus the grounds of assessee is dismissed.
8. In the result, appeal of the assessee is dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is directed against the order of the Deputy Commissioner of Income Tax, Circle-1, Meerut under section 144C(13) read with Section 143(3) of the Income Tax Act pursuant to the direction of Dispute Resolution Panel (DRP) – 2, New Delhi order dated 23.08.2018 under Section 144C(5) of the Act for Assessment Year 2014-15.
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