Case Law Details
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 freebies and gifts to the doctors.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal filed by the assessee is directed against the order of learned Commissioner of Income-Tax (Appeals)-1, Ahmedabad (“CIT(A)” in short) dated 21.08.2018 and the grounds raised by the assessee therein read as under:-
(1) The Hon. CIT(A) has erred in not considering the set off of c/f loss amounting to Rs. 6,02,74,320 to the extent for the adjustment of total income determined by him.
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