Freebies given to Doctors by A Pharmaceutical Company: Whether an allowable expenditure?

Advocate Akhilesh Kumar Sah Explanation 1 to Section 37(1) of the Income-tax Act, 1961(for short ‘the Act’) which has been inserted w.e.f. 01.04.1962 incorporates that for the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure. Expenditure incurred by pharmaceutical companies in respect of physician sample etc. has remained controve...