TaxTMI 
TaxTMI 
2016 (9) TMI 1267
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase are that the assessee company engaged in the business of manufacturing and marketing of pharmaceutical formulation, filed its return of income for the A.Y. under consideration on 01/09/2010 declaring total income of Rs. 9,85,80,200/-. While completing the assessment, the A.O disallowed expenses of Rs. 87,13,002/- incurred on seminar and conference of the Doctors held outside India, during which the assessee company made aware about its products. The A.O made the said disallowances on the ground that the expenditure was not incurred wholly and exclusively for the purpose of business of the assessee. In first appeal CIT(A) following the order of his predecessor, passed in assessee's own case for the A.Ys 2008-09 and 2009-10, confirmed the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....88/Mum/2012 the sole ground raised by the assessee was in relation to the disallowances of Rs. 42,53,924/- on account of claim of expenditure incurred by the assessee on overseas travel of Doctors for attending seminar etc. to encourage product awareness and sales promotion of the products manufactured by the assessee. 7. The co-ordinate Bench of Mumbai Tribunal decided the said ground of appeal in favour of the assessee holding as under:- "6. Admittedly, the assessee is engaged in the manufacturing of drugs and pharmaceuticals. The A.O. noted that the assessee had debited a sum of Rs. 42,53,924/- for sponsoring doctors for overseas tour. On being asked to explain in this aspect, the assessee submitted the required details. The A.O. did ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s so as to influence them to prescribe the medicines manufactured by their company. The assessee had produced a set of photographs to show that by sponsoring of the foreign trips, the product awareness exercise was also done. It is not the case of the Revenue that the persons/doctors whose overseas trip was sponsored were otherwise in any manner related to the assessee company. The only purpose of the assessee company to sponsor the foreign trip of the doctors was for the purpose of promotion and sale of the products of the assessee company. It may be unethical practice for the doctors to accept such type of incentives, however, so far as the assessee is concerned, sponsorship was purely on account of business angle of the assessee company.....