Case Law Details
Lincoln Pharmaceuticals Ltd. Vs DCIT (ITAT Ahmedabad)
Introduction: In a recent legal development, the Income Tax Appellate Tribunal (ITAT) Ahmedabad issued an order in the case of Lincoln Pharmaceuticals Ltd. vs. DCIT. The case revolves around the disallowance of sales promotion expenses, and this article provides an in-depth analysis of the ITAT’s decision, which upheld the addition due to a lack of supporting evidence.
Detailed Analysis:
The case at hand involves Lincoln Pharmaceuticals Ltd. and the disallowance of sales promotion expenses. Initially, the assessing officer had disallowed sales promotion expenses amounting to ₹1,25,04,573 in the assessment order under Section 143(3) of the Income Tax Act. The income of the assessee was assessed at ₹4,02,50,547 based on this disallowance.
The assessee appealed the decision to the Commissioner of Income Tax (Appeals) (CIT(A)). However, the appeal was dismissed on an ex-parte basis because the assessee had failed to attend the appellate proceedings and did not submit any evidence during that stage.
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