Case Law Details
DCIT Vs Novartis Healthcare Pvt. Ltd. (ITAT Mumbai)
We note from a perusal of the impugned order that the Ld. CIT(A) has not looked into the nature of expenses claimed by the assessee and has not looked into the AO’s actions of disallowing the expenditure on account of prohibition of doctors taking any favour in kind/cash from pharmaceutical or allied healthcare sector industries as stated in the CBDT notification (supra) and MCI notification pursuant to the Regulation 2002 (supra). We note that the Ld. CIT(A) has merely followed certain case laws without discussing the nature of expenses claimed by the assessee which impugned action of Ld. CIT(A) cannot be accepted for the simple reason that the Ld. CIT(A) while examining an action of AO ought to have discussed the relevant facts pertaining to the issue and examined the same in the light of the applicable law.
Here in this case the Ld CIT(A) have not bothered to discuss the claim of expenditure purported to have been incurred by the assessee and examined the same in the light of the MCI Regulation and the CBDT notification as well as the applicable law as per the Act; and thereafter ought to have passed a speaking order regarding the legality of the action of AO. Moreover on this issue the Ld. DR brought to our notice the decision of the Hon’ble Supreme Court in the case of Apex Laboratories Pvt. Ltd, in SLP No.23207 (Civil) of 2019 dated 22.02.2022 which needs to be considered and is relevant on this issue. Therefore, in the light of the aforesaid discussion, we set aside the impugned action of the Ld. CIT(A) on this issue and remand the matter back to the file of the Ld. CIT(A) and direct him to adjudicate the issue de-novo in accordance with the relevant judicial precedents and in the light of the Hon’ble Supreme Court decision in Apex Laboratories Pvt. Ltd (supra). So this ground of appeal of revenue is allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This is an appeal preferred by revenue against the order of the Ld. Commissioner of Income Tax (Appeals) (NFAC), Delhi dated 13.12.2021 for AY. 2016-17.
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