Co-ordinate bench in Dy. CIT v. PHL Pharma (P.) Ltd. [2017] 78 taxmann.com 36 held that expenditure incurred by assessee Pharma Company for customer relationship management, key account management, gift articles, free medicine sample, advertisement and sales promotion could not be considered as freebies given to doctors, they were purely for brand recognition; allowable as business expenditure and were not impaired by Explanation 1 to section 37(1). Tribunal held that  in view of fact that regulations prohibiting acceptance of freebies by medical professionals under section 20A of Indian Medical Council Act, 1956 read with rule 6.8 of Indian Medical Council (Professional conduct, Etiquette and Ethics) Regulations, 2002, that such freebies cannot be lawfully accepted by medical professionals, and, therefore, any expenditure incurred for extending these freebies to medical professionals is for a purpose which is prohibited by law, Explanation to section 37(1) is clearly attracted. Thus, conclusions arrived at by co-ordinate bench decision did not reflect correct legal position, and same was position with respect to a large number of other co-ordinate bench decisions following said decision or following line of reasoning in said decision-Whether therefore a bench of three or more Members was to be constituted to consider question as to whether or not an item of expenditure on account of freebies to medical professionals, which is hit by rule 6.8.1 of Regulations, 2002, read with section 20A of Indian Medical Council Act, 1956, could be allowed as a deduction under section 37(1) read with Explanation thereto, in hands of pharmaceutical companies. Matter referred to larger bench.  (AY. 2011-12, 2012-13)