Pharmaceutical company, engaged in business of trading and marketing of medicines, incurred expenses towards business promotion by way of organizing medical camps/blood donation camps/free check up camp, etc., with distribution of ball pens and medical gifts etc with logo of assessee-company to doctors and hospitals is allowable as business expenditure. Explanation 1 to S. 37(1) is not applicable. CBDT Circular No. 5 of 2012, dated 1-8-2012 and ‘Indian Medical Council Regulations, 2002’, imposing prohibition on medical practitioner and their professional associations from taking any gift, travel facility, hospitality, cash or monetary grant from pharmaceutical and allied health sector industries are not applicable . (AY. 2015 -16)