Case Law Details
Abbott India Limited Vs ACIT (Bombay High Court)
Bombay High Court held that Circular No.5/2012 dated 1 August 2012 will not be applicable to the instant case pertaining to AY 2008-09. Law to be applied is the one that is in force in the relevant assessment year, unless otherwise provided expressly or by necessary implication. Accordingly, addition unsustainable.
Facts- A return of income was fled for the assessment year 2008-09 on 30 September 2008, in which the Petitioner inter alia claimed Rs.48,34,49,690/- as expenditure on gifts as a part of sales promotion expenses. Besides this, the Petitioner claimed an amount of Rs.2,24,14,000/- as expenditure on account of distribution of samples of medicines manufactured by the Petitioner and debited under the category ‘physician sample’.
Order of assessment came to be passed u/s 144C read with section 143(3) making addition of 10% on an estimate basis. Further, penalty proceedings u/s 271(1)(c) was also initiated.
Notice dated 27 March 2015 impugned in the present Petition, was issued under Section 148 of the Act, which sought to re-assess the income of the Petitioner for the assessment year 2008-09 on the ground that the assessessing officer had reason to believe that the income of the Petitioner for the relevant assessment year had escaped assessment within the meaning of Section 147 of the Act.
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