https://www.taxtmi.com/caselaws?id=235229 The HC held that expenses claimed for distributing free samples to doctors, if in violation of the Indian Medical Council Regulations, are inadmissible under section 37(1) of the Income-tax Act, as such expenses are prohibited by law. The court emphasized that expenditures forbidden by law cannot be deducted as business expenses. The circular clarified that the value of freebies to medical practitioners is taxable income. The assessee bears the burden to prove that the expenditure complies with Medical Council Regulations. Since the assessee failed to satisfy the Assessing Officer on this point, the appeal was dismissed against the assessee. en-us Wed, 26 Dec 2012 00:00:00 +0530 Tue, 05 Aug 2025 17:20:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235229 The HC held that expenses claimed for distributing free samples to doctors, if in violation of the Indian Medical Council Regulations, are inadmissible under section 37(1) of the Income-tax Act, as such expenses are prohibited by law. The court emphasized that expenditures forbidden by law cannot be deducted as business expenses. The circular clarified that the value of freebies to medical practitioners is taxable income. The assessee bears the burden to prove that the expenditure complies with Medical Council Regulations. Since the assessee failed to satisfy the Assessing Officer on this point, the appeal was dismissed against the assessee. Case-Laws Income Tax Wed, 26 Dec 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235229