2001 (3) TMI 51

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....0, 2001, the appeal of the Department was allowed with reasons to be recorded separately subsequently. We, accordingly, now, hereby give reasons for allowing the appeal. The following question of law arises for determination under section 260A of the Income-tax Act, 1961: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in excluding 50 per cent. of t....

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....of the assessee was rejected by the Assessing Officer who came to the conclusion that free distribution of samples was in the nature of advertisement and sales promotion and, therefore, section 37(3A) was applicable. Being aggrieved by the disallowance, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). The appellate authority dismissed the appeal. Therefore, the matter ....

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.... such distribution amounted to publicity and sales promotion and, therefore, the case fell within the scope of section 37(3A) of the Income-tax Act. The Supreme Court overruled the judgment of the Andhra Pradesh High Court reported in CIT v. J and J Dechane Laboratories (P.) Ltd. [1996] 222 ITR 11. However, learned counsel for the assessee submitted that, in the present matter, the case should be ....