https://www.taxtmi.com/caselaws?id=795194 Distributor-incurred advertisement, marketing and brand-promotion costs may qualify as deductible business expenditure under Section 37(1) where the distributorship arrangement assigns regional promotion responsibility to the distributor, the costs are independently funded rather than reimbursed, and invoices support their genuineness. Price-drop credits given to downstream dealers may similarly be deductible where principal compensation covers only the base price of identified unsold inventory, while the credits reverse the distributor's unreimbursed margin on sold stock. Credit notes, reconciliations, commercial necessity, price parity and dealer relationships support treatment as an unreimbursed commercial loss. en-us Wed, 17 Jun 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795194 Distributor-incurred advertisement, marketing and brand-promotion costs may qualify as deductible business expenditure under Section 37(1) where the distributorship arrangement assigns regional promotion responsibility to the distributor, the costs are independently funded rather than reimbursed, and invoices support their genuineness. Price-drop credits given to downstream dealers may similarly be deductible where principal compensation covers only the base price of identified unsold inventory, while the credits reverse the distributor's unreimbursed margin on sold stock. Credit notes, reconciliations, commercial necessity, price parity and dealer relationships support treatment as an unreimbursed commercial loss. Case-Laws Income Tax Wed, 17 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795194