Assessee-pharmaceutical goods company incurred sales promotion expenditure by way of gifting freebies to dealers and stockiest with reference to their performance in achieving sales target and claimed same as deduction under.  Assessing Officer, by placing reliance on Circular No 5/2012 dated 1-8-2012 and provisions of section 37(1), held that expenses on account of sales and business promotion by giving freebies to doctors or touts were prohibited. He also held that assessee could not produce bills/vouchers of said sales promotion expenses so debited in profit and loss account. On appeal the Tribunal held that the  Assessing Officer had not substantiated that benefit of freebies were given directly or indirectly to medical practitioners and their professional associations which was a prohibited activity in view of above said circular. On facts  disallowance of expenses made by Assessing Officer is held to be not justified. The Tribunal also held that addition is also not justified under section 69C of the Act.  (AY. 2013-14)