Allowing the appeal of the assessee the Tribunal held that t he disallowance under the Explanation to 37(1) of “freebies” to doctors by relying on CBDT Circular No. 5 dated 01.08.2012 & the IMC (Professional Conduct, Etiquettes & Ethics) Regulation, 2002 is not justified. The code of conduct prescribed by the Medical Council is applicable only to medical practitioners/ doctors registered with the MCI and does not apply to pharmaceutical companies & the healthcare sector in any manner. The CBDT has no power to extend the scope of the MCI regulation to pharmaceutical companies without any enabling provision either under the Income tax Act or the Indian Medical Regulations. As the appeal was quashed on reassessment , the Tribunal held that observation as regards the merit of the case is held  to be academic in nature . Referred   MAX Hospital., Pitampura v. Medical Council of India [CWP No. 1334/2013, dated 10.01.2014 ( Delhi) (HC) , Aristo Pharmaceuticals Pvt. ltd. v. ACIT (ITA No. 6680/Mum/2012, dt. 26.07.2018), ( ITA No. 2344 / Mum /2018 / / 1212 /Mum/2019   dt 22-07 -2020 ) (AY. 2012-13 )