1997 (8) TMI 93

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....edings, the Assessing Officer noted that the assessee had incurred an expenditure of Rs. 1,57,149 on literature which was distributed to Doctors. It was submitted before the Assessing Officer that the literature was used for the instructions/information of the Doctors and as per the provisions of the Drug Law. The specific head of this expenditure is "Details of art work". It was argued that the literature gives vital information about the chemical contents, clinical pharmacology, indications and contra-indications, dosages and medical references for the limited use of registered medical practitioners/laboratories, and as such, the same could neither be termed as advertisement nor meant to be so. The Assessing Officer noted that the substan....

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....of the company. He submitted that the case of the assessee was squarely covered by the ratio of the Karnataka High Court in the case of Smith Kline & French (India) Ltd. 4.1 Shri S.N. Soparkar, the learned counsel for the assessee supported the order of the learned CIT(Appeals). He produced before us some of the pieces of literature to show that such literature gives basic information about a product or medicine and its effect on a particular type of alignment. Therefore, what such literature does is that it informs an educated Doctor about the formation, chemical mixing, etc., of a drug which can be effective for treatment of some particular disease. A doctor can make use of such knowledge to prescribe any medicine which has got same co....