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Dy .CIT v. Curosis Healthcare Private Limited ( Jaipur )( Trib) www.itatonline .org.

.37(1): Business expenditure – Sales and business promotion expenses -Gifting freebies to dealers and stockists – Performance in meeting sales targets – Allowable as a deduction – Circular No 5 of 2012 dt. 18 -2012 prohibits the benefit of freebies directly or indirectly to medical practioners and their professional associations and not to dealers and stockists .

Dismissing the appeal of the Revenue the Tribunal held that Gifting freebies to dealers and stockists based on performance in meeting sales targets is allowable as a deduction.  Circular No 5 of 2012 dt. 18 -2012 prohibits the benefit of freebies directly or indirectly to medical practitioners and their professional associations and not to dealers and stockists  .  ( ITA . 352 / JPR / 2022 dt .14 -2 -2023 )( AY. 2013 -14 )