Sample expense for Product of Parent Company claimed by subsidiary not allowable

Nike India Private Limited Vs ACIT (ITAT Bengalore)

There is no dispute that the parent company Nike Inc., has introduced new products and the samples are supplied to third party distributors in order to create awareness of new products amongst the public. The assessee herein is merely an intermediary between M/s Nike Inc and the public. Hence, it is the responsibility of the assessee, first of all, to show that the expenditure on samples & incidental expenditure was incurred for the purposes of business of the assessee. Under sec.37(1), expenditure

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