TaxTMI 
TaxTMI 
1997 (8) TMI 93
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....iture incurred by the assessee-company, which is engaged in the manufacturing of drugs & medicines, on literature and related matters constitutes advertisement expenditure. 2. The assessee is a Private Limited Company and is engaged in the manufacture of drugs & medicines. During the course of assessment proceedings, the Assessing Officer noted that the assessee had incurred an expenditure of Rs.....
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....graphy, modelling charges and for printing of literature. Relying upon the decision of the Hon'ble Karnataka High Court in the case of Smith Kline & French (India) Ltd. v. CIT [1992] 193 ITR 582 he held that these expenses were incurred towards advertisement/publicity and sales promotion and consequently, the restrictive clause of section 37(3A) was held applicable. He, accordingly, disallowed the....
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....f the Assessing Officer. He submitted that the literature was distributed free of cost and there was no other motive but to promote the sales of the products 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 ....
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....ndhra Pradesh High Court in the case of CIT v. J & J Dechane Laboratories (P.) Ltd. [1996] 222 ITR 11. 5. We have considered the rival submissions and perused the facts on record. One of the essential characteristics of advertisement or for that matter sales promotion will be to make available information about the product to maximum number of persons or public at large. The act of advertising me....