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ITAT Ahmedabad Allows Full Sales Promotion Expense – Rejects AO’s Restriction as Arbitrary
Case Law Details
- Case Name
- Dahyabhai Laljibhai Patel Vs ITO (ITAT Ahmedabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2018-19
- Courts
- All ITAT, ITAT Ahmedabad
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Dahyabhai Laljibhai Patel Vs ITO (ITAT Ahmedabad)
Facts
Assessee, engaged in pharmaceutical distribution, filed return for AY 2018-19.
During scrutiny, AO noticed sales promotion/distribution expenses paid to Welable Pharma at 13.5% of sales, which he held excessive.
AO restricted it to 5% of sales, disallowing ₹25,88,504/-, terming the excess “beyond market limits.”
CIT(A)/NFAC confirmed the restriction, leading to the present appeal before ITAT.
Assessee’s Submission
Assessee furnished comparative data of sales, purchase values & credit-note compensations for preceding years (...
Author Info
