TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Medical Expenses & ESIC Contributions Disallowed for Lack of Evidence</h1> <h3>M/s. Shine Pharmaceuticals Ltd. Versus The DCIT Circle (2) (1) (1) Baroda</h3> M/s. Shine Pharmaceuticals Ltd. Versus The DCIT Circle (2) (1) (1) Baroda - TMI Issues:1. Disallowance of expenses for distributing gifts and providing hospitality to doctors/medical practitioners.2. Disallowance of Employee's Contribution payments towards ESIC.Analysis:Issue 1: Disallowance of expenses for distributing gifts and providing hospitality to doctors/medical practitioners:The appeal was filed against the order of the CIT(A) upholding the disallowance of Rs. 18,16,120 incurred for distributing gifts and providing hospitality to doctors/medical practitioners. The AO disallowed the amount reasoning that a portion was spent on gifts like laptops, mobiles, watches, etc., for doctors, and an ad-hoc disallowance was made for lodging, boarding, and traveling expenses of doctors. The assessee argued that the expenses were for sales promotion to chemists/medical stores, not doctors. The AO found insufficient evidence and made the disallowance. The CIT(A) confirmed this decision based on past disallowances and the MD's admission of the ad-hoc disallowance. The ITAT upheld the decision, emphasizing the absence of evidence proving gifts were not given to doctors.Issue 2: Disallowance of Employee's Contribution payments towards ESIC:The AO disallowed Rs. 4,11,378 for not making Employee's Contribution payments towards ESIC before the due date. The CIT(A) upheld this decision, and the ITAT dismissed the appeal, stating the disallowance was justified.In conclusion, the ITAT upheld the disallowances of expenses for distributing gifts to doctors and not making ESIC payments, emphasizing the lack of evidence provided by the assessee to support their claims. The appeal was dismissed, affirming the lower authorities' decisions.
TaxTMI 
TaxTMI 
