Addition based on circular made effective on later date not unsustainable in law

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 Pet...