2022 (2) TMI 1182

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....e registry has pointed out delay of 64 days in filing these appeals. 3. Having considered rival submissions, we are of the view that actually there is no delay as the limitation period was extended due to prevailing pandemic. Accordingly, we admit the appeals for adjudication on merits. 4. The only dispute arising in these appeals pertains to disallowance of expenditure incurred towards free samples. 5. Briefly the facts are, the assessee is a resident company engaged in the business of manufacturing, trading and marketing of basic vitamins, drugs, laboratory and fine chemicals, reagents, pharmaceutical specialties, diagnostics & pigments. In course of assessment proceedings for the impugned assessment years, the assessing officer notice....

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....edical practioners / others to promote their business activity. She submitted, the assessee has appointed marketing representatives, who travel to different places and physically meet the doctors / medical practioners to distribute the free samples. She submitted, in course of assessment proceedings the assessee has furnished the required details of the free samples distributed as well as the doctors / medical practitioners to whom such samples were distributed. In this context, she drew our attention to various documents placed in the paper book. Further, she submitted, the cost incurred by the assessee towards free samples works out to a negligible percentage of the total turnover and not in excess of similar expenditure incurred in previ....

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.... and address are incomplete. However, the assessing officer has not referred to any such specific instance. On the contrary, on perusal of documents furnished in the paper book, we have noticed that the assessee had furnished the details of free samples along with their quantity and cost. Further, the assessee has also furnished the details of chemists' shop to which samples have been given. Additionally, the assessee has furnished the list of doctors / medical practitioners with their qualification, the field of practice, detailed address with PIN code. 9. It is a fact that the assessee personally does not go and distribute free samples to doctors / medical practitioners. Rather, the assessee has appointed a number of marketing representa....