https://www.taxtmi.com/caselaws?id=413742 Expenditure by a pharmaceutical company on freebies for medical professionals is treated as hit by the prohibition on acceptance of such benefits under medical ethics regulations, so it is not deductible as business expenditure. Gifts, travel, hospitality, gift cards, journals, books, magazines and medical instruments fall within the kinds of benefits doctors are barred from receiving. Because the payment is incurred for a purpose prohibited by law, the Explanation to section 37(1) denies deduction. A CBDT circular cannot override the statutory position, and the contrary coordinate bench view was not treated as binding in light of higher judicial authority and earlier precedent. en-us Thu, 14 Oct 2021 00:00:00 +0530 Tue, 19 Oct 2021 16:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=413742 Expenditure by a pharmaceutical company on freebies for medical professionals is treated as hit by the prohibition on acceptance of such benefits under medical ethics regulations, so it is not deductible as business expenditure. Gifts, travel, hospitality, gift cards, journals, books, magazines and medical instruments fall within the kinds of benefits doctors are barred from receiving. Because the payment is incurred for a purpose prohibited by law, the Explanation to section 37(1) denies deduction. A CBDT circular cannot override the statutory position, and the contrary coordinate bench view was not treated as binding in light of higher judicial authority and earlier precedent. Case-Laws Income Tax Thu, 14 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=413742