Expense on gifting of freebies to medical practitioners not allowable

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 distributio...