2018 (5) TMI 1929

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.... (the 'Act'). 2. The grounds of appeal filed by the Revenue read as under: 1. The learned CIT(A) erred in confirming the disallowance made by the assessing officer with regard to honorarium lo doctors, travel and stay facilities of doctors in connection with conferences/seminars, distribution of books, expenses on participating in exhibitions/sponsorships for conferences and provision of expenses included in advertisement and promotional expenses of Rs. 1,13,16,311 under section 37(1) of the Income-tax Act, 1961 on the premise that the said expenditure has been incurred for purposes which are prohibited by law. 2. The learned CIT(A) erred in holding that the appellant has not incurred expenditure for participating in exhibitions or insta....

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....penses incurred in providing freebies to Medical Practitioner by Pharmaceutical and allied health sector Industry". After going through the details/documents furnished by the assessee, the AO identified the following expenses as having been incurred giving benefit to the doctors/their professional associations by way of freebies. Sr. No. Nature of expenses Amount (Rs.) i. Honorarium to Doctors 14,17,103 ii. Travel and stay facility of doctors in connection with conferences/seminars 55,25,138 iii. Distribution of books 12,20,627 iv. Expenses on participating in exhibition/sponsorship for conferences 28,58,134 v. Other expenses (provision of expenses) 2,95,309 vi. ....

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....ernment, amended the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations 2002, wherein clause 6.8 was inserted w.e.f. 10.12.2009. Thus the Ld. DR submits that the amended IMC Regulations are applicable to the impugned assessment year and rightly the Ld. CIT(A) has sustained an addition of Rs. 1,13,16,311/- made by the AO. 7. We have heard the rival submissions and perused the relevant materials on record. The reasons for our decisions are given below. In response to a query raised by the AO during the course of assessment proceedings, the assessee submitted a detail explanation indicating that the expenses amounting to Rs. 1,33,92,060/- located by the AO were incurred wholly and exclusively for the purpose ....