2022 (2) TMI 335

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....red towards CME program organized by various medical associations, hospitals sponsorship of medical books for library purpose, etc. to create awareness about health diseases and treating the same as inadmissible under section 37(1) of the Act. 2. That on the facts and circumstances of the case and in law, the ld. CIT(A) erred in upholding the addition of Rs. 1,18,440/- on account of interest on delay in payment of service tax under section 37(1) of the Act." 3. The assessee filed return of income on 08.10.2010 declaring an income of Rs. 4,92,63,279/-. The assessee company is engaged in Trading of diagnostic products and imaging agents including contrast media products and nuclear medicine cold kits. Disallowance of CME & Free goods expe....

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....bited by the MCI) by the pharmaceutical and allied health care industry are in violation of the provisions of the Regulations and such are inadmissible under section 37(1) of the Act being an expenditure prohibited by the law. 8. Relying on the circular of the CBDT and the MCI guidelines, the AO has disallowed an amount of Rs. 84,30,855/-. 9. Aggrieved the assessee filed appeal before the ld. CIT(A) who has examined the nature of expenditure relating to CME and held that while some expenditure is in the nature of the sponsorship of events, there are certain others which relate to provisions of books for Government as well as private hospitals and there are still others which are in the nature of sponsorship of doctors by way of providing ....

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....B for Being penalty paid for the late f i l l ing of service tax return for IInd  half of FY 2008 -09 2 , 000 . 00 11 . 06 . 2009 The amount of Rs. 6 , 000 is offered to tax in the tax Being penalty paid for the late f i l l ing of service tax return for l lnd  half of FY 2008 - 09 4,000.00 11.06.2009 computation Being ST l iability with interest booked as per the ST audit conducted by Dept, for FY 2005 - 10 28,868.00 31.03,2010   The assessee company was required to show cause as to why the expenses of Rs. 1,24,440/- be not disallowed. In compliance thereto the assessee filed written reply as under: I wish to submit that the aforesaid expense was incurred towards interest on delay in deposit of service tax du....

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....ually belongs to the Govt., is now with the deductor. In fact, the deductor is an agent of Govt., for collection of money due to the Govt. & a custodian of the same till it is deposited. Delayed payment of TDS to the Government in effect tantamounts to the deductor utilizing the amount which actually belongs to the crown and has already been collected/deducted from someone else. Similarly, the service tax is collected by the service provider from the recipient of the service at the time of receiving the payment for the service. 16. The service tax also belongs to the crown and has already been collected from someone else. Like TDS, Service tax is also not a tax liability of the deductor who only collects & remits it to the Govt. This uncan....