https://www.taxtmi.com/caselaws?id=208152 The ITAT allowed the appeal filed by the assessee, determining that expenses on presents to stockists should be classified as sales promotion rather than gifts. The tribunal held that the items, bearing the assessee's name or logo, were tools for advertisement and had a direct nexus with sales promotion and publicity. By categorizing the expenses under sales promotion instead of gifts, the assessee would face a lower tax burden. The ITAT emphasized that circulars cannot override statutory provisions and that specific provisions on sales promotion expenses should prevail over general provisions on gifts. The matter was remanded to the Assessing Officer for a fresh decision in line with the law. en-us Fri, 21 Oct 2011 00:00:00 +0530 Thu, 23 May 2013 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208152 The ITAT allowed the appeal filed by the assessee, determining that expenses on presents to stockists should be classified as sales promotion rather than gifts. The tribunal held that the items, bearing the assessee's name or logo, were tools for advertisement and had a direct nexus with sales promotion and publicity. By categorizing the expenses under sales promotion instead of gifts, the assessee would face a lower tax burden. The ITAT emphasized that circulars cannot override statutory provisions and that specific provisions on sales promotion expenses should prevail over general provisions on gifts. The matter was remanded to the Assessing Officer for a fresh decision in line with the law. Case-Laws Income Tax Fri, 21 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208152