Assessee Company was engaged in manufacturing nutritious food for infants and children. It incurred expenses on free samples and distribution of children’s nutrition food. This activity is prohibited under the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 (Relevant Act). Thus, these expenses were disallowed. Similarly, expenses incurred by the assessee on conducting conferences and seminars of doctors and medical professionals were also disallowed. The assessee justified the business expediency of the expenses by submitting that the expenses enable the healthcare professional to gather technical knowledge and commercial insights about the products. However, by relying on the Apex Court’s judgement in the case of Apex Laboratories (P) Ltd v. Dy. CIT (2022) 442 ITR 1/ 286 Taxman 200 (SC0  these expenses were also disallowed.  In the incidental matter where CIT(A) opined that the assessee had conclusively violated the provisions of the relevant Act and initiated the penalty proceedings without offering any opportunity to the assessee, the matter was remanded back to CIT(A).(AY. 2012-13)