TaxTMI 
TaxTMI 
2019 (12) TMI 906
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.... manufacturing and sale of pharmaceuticals products. The assessee has e-filed return of income on 29.11.2012 declaring total loss of Rs. 28,01,80,904/-. The Assessing Officer assessed total income of the assessee at loss of Rs. 17,70,09,340/- after making additions of Rs. 10,31,71,569/- on account of expenditure made on gifts given to doctors and disallowing claim of deductions u/s.35AB(1) and u/s.35(1)(iv) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 3. Though the assessee has preferred multiple grounds of appeal before us, however, ground Nos.1.1 to 1.5 pertains to the disallowance of the marketing & Sales promotion expenses to the extent of Rs. 1,96,67,623/- as considered by the Assessing Officer and accordingly....
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....pitality or monetary grant from the health & pharmaceutical sector industries, the Assessing Officer disallowed expenditure being prohibited by law as provided in the explanation to section 37(1) of the Act and added the entire amount of Rs. 1,96,67,623/- to the total income of the assessee. 6. That when the matter travelled before Ld. CIT(Appeals), the assessee submitted elaborate written submission reiterating those which has already been made before the Assessing Officer and they are placed on record. The Ld. CIT(Appeals) observed that in assessee's own case on identical issue for assessment year 2010-11, similar disallowance made by the Assessing Officer was upheld u/s.37(1) of the Act. The Ld. CIT(Appeals) in the present assessment ....
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....efers to the CBDT Circular No. 5 / 2012 dated 01.08.2012 which states that the claim of such expenditure constitutes violation of the circular issued by Medical Council of India. Accordingly, the disallowance has been made by the learned A.O. 1.2] The learned CIT(A) has confirmed the said disallowance. He has discussed this issue in paras 4 to 4.4 of his order. He has relied upon the order passed by him in assessee's own case for A.Y. 2010 - 11. 1.3] The assessee submits that similar disallowance was made in its own case for A.Y. 2010 - 11. The matter travelled before Hon'ble ITAT. It has been held by Hon'ble ITAT that the circular issued by Medical Council of India is not applicable to pharmaceutical comp....
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....g, the said issue is decided in favour of the assessee. Thus, the relevant grounds on this issue are allowed." 8. Per contra, the Ld. DR placed strong reliance on the orders of the Sub-ordinate Authorities. 9. We have perused the case records and analyzed the facts and circumstances of this case and have heard the parties herein. We observe that in assessee's own case for assessment year 2011-12, the Tribunal had an opportunity to examine this issue and it was brought to the notice of the Tribunal that in assessee's own case for assessment year 2010-11 in ITA No.1532/PUN/2015 (supra.) the matter was decided in favour of the assessee. Thereafter, the Tribunal while deciding this issue for assessment year 2011-12 (supra.) had held that ....
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.... 30.01.2012. In view of the decisions relied upon by the appellant, the additional claim of appellant is being admitted for adjudication. During the appellate proceedings for AY 2011-12 identical issue of raising fresh claim of tax credit u/s.90/91 withheld by Heritage Pharma labs Inc. came up for adjudication. The appellant filed similar contentions during AY 2011-12." The Ld.CIT(Appeals) basically relied on the Appellate order for assessment year 2011-12 and rejected the claim of the assessee. The Ld. CIT(Appeals) has reproduced the relevant findings of the Appellate order for assessment year 2011-12 in his present order and summarily rejected this ground of appeal raised before him as per reasoning therein which is on record. 12. A....
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....s unambiguous on the issue, which provides that where the assessee proves that in respect of his income which accrued or arose during that previous year outside India and he has paid in any country with which there is no agreement under s. 90 for the relief or avoidance of double taxation, he shall be entitled to deduction from the Indian income-tax payable by him of a sum calculated on such doubly taxed income. We find that nowhere in the provision of s. 91(1) of the Act, it is provided that the payment of taxes outside India shall be during the relevant previous year itself. The purpose of this provision of s. 91(1) of the Act is to provide relief in a case where the assessee has paid the taxes outside the country, not to subject such ass....