AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (3) TMI 1008
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....iated. 5. On 22 February 2017, an assessment order under section 143 (3) of the Act was passed disallowing certain percentage of expenses on samples given to doctors on the ground that same constitutes sale promotion expenses incurred on the doctor. The said order is a subject matter of an appeal. We are informed that the said appeal is pending as of today. 6. On 30 March 2021, impugned notice under section 148 of the Act was issued for reopening the case calling upon the Petitioner to file its return of income since the assessing officer had reasons to believe that the income has escaped assessment. The petitioner on 23 April 2021, filed its return of income in response to notice under Section 148 of the Act and on 26 April 2021 requested for reasons for reopening the case. On 29 April 2021, the reasons were furnished to the petitioner. On 13 May 2021, the petitioner objected to the said reasons on various grounds and the said objections were rejected by the assessing officer vide order dated 1 February 2022. 7. It is on the above backdrop that the petitioner is before this Court challenging the notice under Section 148 of the Act and the order rejecting the objections. ....
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....discussed in the assessment order under Section 143 (3) of the Act. Paragraphs 3 to 6 again refers to the items referred to above. In the reasons recorded and exhibited at page 119 of the petition, the respondent has admitted that the petitioner has filed copy of the annual report and audited Profit & Loss account and balance sheet along with the return of income where various information/ material were disclosed. However, the reason further states that requisite full and true disclosure has not been made by the petitioner. On a query being raised by the Court to the revenue as to what are the requisite full and true disclosure of material facts which the petitioner has not disclosed, the learned counsel for the revenue relied upon the reasons as recorded. On a perusal of the reasons as recorded, we do not find any statement which states as to what are the requisites full and true disclosure of the material facts which have not been disclosed. On the contrary, the officer in the reasons recorded has admitted that the issue for which the reopening is sought has either been disclosed in the Profit & Loss account or in the balance-sheet. The reasons further admits that the issue wi....
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.... Road Mumbai MUMBAI 400030,Maharashtra India 117 PAN: Assessment Year: AAACG4414B 2013-14 Dated: 29/04/2021 DIN & Letter No: ITBA/AST/F/17/2021-22/1032723909(1) Sir/Madam/M/s, Subject: Providing of reasons recorded for issue of notice u/s 148 of the Income Tax Act, 1961 u/s 147 of the Act - reg. कोष शूलो दणà¥à¤¡- Please refer to the letter dated 23.04.2021 on the above mentioned subject. E TAX DEPAR 2. In view of the same, a copy of the reasons recorded for initiation of proceedings u/s 147 of the Act in case of the assessee company for AY.2013-14 is annexed herewith this letter. 3. It may be noted that the reassessment proceedings has to be completed in a time bound manner and therefore, you are requested to send your objections, if any, to the undersigned within a period of 15 days from the date of receipt of this letter. It may be further clarified that if the objections are not received within the specified period, the assessment/reassessment proceedings will be proceeded further without any further reference to you. You are also requested to note t....
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....of the Notification dated 10.12.2009 issued by the Medical Council of India, the above expenses are held to have been incurred directly or indirectly to appease the doctors/their professional associations by way of giving away the freebies, which is against the public policy and prohibited by law. Therefore, amount debited under the head physician samples to the profit and loss account should have been completely disallowed. 經 comprat expense v) Further, it is seen that assessee had debited an amount of Rs. 12,61,44,518/- under the head sales promotion expenses/ conference expenses of doctor to the profit and loss account. In the assessment order, 70% of the said expenditure disallowed and remaining 30% is allowed. As per explanation to Section 37(1) of the Act by holding that expenses incurred for providing gifts, travel facilities & hospitality to medical practitioners compromises with the professional autonomy of medical practitioners and/or autonomy or freedom of the medical institutions/associations and the same are also prohibited by the IMC Regulations. Further, the Medical Council of India, in exercise of the powers conferred ....
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....le was not disallowed during the assessment proceedings. Further, an amount of Rs.26,84,50,749/- debited under the head physician samples to the profit and loss account and an amount of Rs.12,61,44,518/- under the head sales promotion expenses/ conference expenses of doctor to the profit and loss account was disallowed to the extent of 70% instead of 100%, it gives reason to believe that income amounting to Rs.42,93,25,580/- has escaped assessment. n 6. In this case a return of income was filed and assessment u/s. 143(3) r.w.s. 144C(3) was passed on 22.02.2017. The requirements to initiate proceeding u/s. 147 of the Act are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above (refer paragraphs 2 to 6) have carefully considered the assessment records containing the submissions made by the assessee in ....