Hospitals' promotional expenses disallowed u/s 37(1) as prohibited, but genuineness of expenditure supports allowance.

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....Allowability of Professional promotion charges - Expenses incurred by Hospitals towards patients referred to hospital by doctors/villagers/RMP’s etc. - the disallowance was made by the AO only on the ground that the said expenditure is hit by the explanation to Section 37(1) being prohibited. When the genuineness of the expenditure is not doubted then the claim of the assessee cannot be disallowed. - AT....