Sales promotion expense on distribution of articles to doctors allowable

Aristo Pharmaceuticals (P.) Ltd. Vs ACIT (ITAT Mumbai) Conclusion: Assessee-pharmaceutical company was entitled to claim sales promotion expenses incurred on distribution of articles to the stockists, distributors, doctors etc and the same was not hit by the Explanation to Sec. 37(1) in view of circular issued by MCI and circular of CBDT vide Circular No. 5 of 2012. Held: Assessee-pharmaceutical company engaged in manufacturing and sales of pharmaceuticals and allied products. During the year, it had debited an amount under the head ‘sales promotional article expenses’. During the assessme...