TaxTMI 
TaxTMI 
2023 (8) TMI 913
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....0,81,12,869/- after making disallowance of sales promotion expenses of INR 11,30,18,798/-. (a) Ground No. 1 is general in nature. (b) Ground No. 2 to 17 challenged the jurisdiction of the Assessing Officer to pass rectification order under Section 154 of the Act. (c) Ground No. 18 to 23 are directed against the merits of the addition sales promotion expenses of INR 11,30,18,798/-. (d) Ground No. 24 is directed against charging of tax at the rate of 30% (plus surcharge and education cess) on addition of INR 4,13,91,854/- made in the Assessment Order under Section 143(3) of the Act with stands settled as per direct tax Vivad Se Vishwas Act, 2020. (e) Ground No. 25 and 26 pertains to consequential levy of interest under Section 234B of the Act. (f) Ground NO. 27 and 28 are directed against charging of interest under Section 220(2) of the Act. 3. The relevant facts in brief are that the Appellant filed return of income for the Assessment Year 2011-12 on 28/09/2011 declaring total income of INR 20,81,12,896/-. The case of the Appellant was selected for scrutiny and notice under Section 143(2) and 142(1) were issued to the Appellan....
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....posed the aforesaid Writ Petition No. 2240 of 2021 filed by the Appellant, in writ jurisdiction for quashing of the order impugned. Vide order dated 23/02/2022, the Hon'ble Bombay High Court disposed off the petition with the following direction: "1] Pursuant to the order passed on 20.04.2022, Dr. Ashish Kate has filed the affidavit which is taken on record. Explanation offered is accepted. 2] After the petition was heard for some time, Mr. Thakkar, on instructions, seeks leave to withdraw the petition with liberty to raise all points including the jurisdiction of Assessing Officer to issue notice and/or passing an order under Section 154 of the Act before the appellate authority. 3] Mr. Thakkar states that an appeal will be filed within 20 days from today. Statement is accepted. If there is delay upto 20 days, that delay stands condoned." 8. As per the above directions, the Appeal was preferred with the period 20 days granted by the Hon'ble High Court. In view of the aforesaid, the Learned Authorised Representative for Appellant submitted that the appeal be treated as having filed in time. The Learned Departmental Representative did not have any objec....
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....in the case of the Assessee for the Assessment Years 2002-03 & 2003-04, and Assessment Years 2004-05, 2005-06 & 2007-08, dated 06/02/2009 and 26/02/2016, respectively, were in force and the Assessing Officer was bound to follow the same. In any case, the issue of deduction for sales promotion expenses was not free from doubt and fell into the category of debatable issue falling outside the scope of Section 154 of the Act. The Learned Authorised Representative for Appellant supported the aforesaid submission by the following judicial precedents : (i) CIT Vs. Palani Andavar Cotton & Synthetic Spinners Ltd. : [2010] 326 ITR 339 (Madras), (ii) Commissioner of Income Tax, Allahabad Vs. Sincere Construction: [2015] 54 taxmann.com 31 (Allahabad), (iii) Rallis India Ltd. Vs. Assistant Commissioner of Income Tax, Range 1(3) [2010] 323 ITR 54 (Bombay), (iv) Commissioner of Income-tax (Central), Ludhiana Vs. Max India Ltd.: [2007] 295 ITR 282 (SC), (v) Commissioner of Income-tax Vs. K. Venkateswerarao : [1998] 169 ITR 330 (Andhra Pradesh), (vi) Commissioner of Income Tax Vs. Schlumberger Sea Co. Inc. : [ 2003] 264 ITR 331 (Calcutta), (vii) Jiyajerrao Cotton Mills Ltd. Vs. Income-tax Officer :....
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....ction 116 of the Act may amend order passed by it under the provisions of the Act. Therefore, the power vested under Section 154 of the Act is for rectification of 'mistake apparent on record'. In the case of Jiyajerrao Cotton Mills Ltd (supra), cited by the Learned Authorised Representative for Appellant, it was held by the Hon'ble Calcutta High Court as under: "The law as to what is a mistake rectifiable under s. 154 of the I.T. Act, 1961, as being apparent from the record is well settled. A glaring and obvious mistake can be corrected under the said section but a debatable issue on the question or which required investigation and arguments as to facts or law to find out if there was a mistake cannot be rectified under the said section." 13. Thus, a debatable issue would mean a debatable issue would be one that requires investigation and arguments as to the facts or law to find out if there is a mistake cannot be subject matter of rectification. In the case before us, clearly, the issue relating to allowability of sales promotion expenses in the hands of the Appellant was not settled in favour of the Revenue. On one hand there was Circular No. 5 of 2012, dated 01/08/2....
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....ory Board doctors (Key Opinion Leaders) to dissipate knowledge of assessee's products to other doctors across India. 3 Market Research Fees 22,80,530.9 Market search for new product study/subscription for medical transaction 4 Congress Organ Fees 20,000.00 Scientific exhibition at Congress 5 Speaker Programs 453,299.00 Sponsorship of speaker programs/Indian medical journal sponsorship 6 Odd. Supplies Purch. (Sales Promotion) 8,19,081.27 Field Stationers Field training materials 7 Printing & Reproduct (Sales Promotion) 1,54,199.00 Field Stationers Field training materials 8 Brand & Gimmick Exp. (Advertisement) 2,32,40,604.27 Brand recalling giveaways items like pen/doctors utility appliances like apron/ gloves/nylon disposable bags/op. table cover 9 Media Expenses -6,48,000.00 Negative figure 10 Promotion Expenses 10,78,571.39 Small expenses on field visits/Round Table meetings with doctors for arranging snacks, tea etc. "These are incurred mostly by employee on field and claimed as reimbursement. 11 Public Relation Expenses 1,37,64,709.53 Meetings conducted by field persons t....