Dismissing the appeal of the revenue the Court held that the Board’s Circular No. 5 of 2012, dated August 1, 2012 (2012) 346 ITR 95 (St) could not have been applied retrospectively to the assessment year 2010-11. The circular imposed a new kind of imparity and therefore, the Tribunal had consistently held that the Board’s Circular No. 5 of 2012 would not have any retrospective effect but would operate prospectively from August 1, 2012. These decisions of the Tribunal were not assailed before the High Court. The Tribunal was justified in deleting the expenses in providing free gifts facilities to Medical Practitioners. (AY.2010-11)
PCIT v. Goldline Pharmaceuticals Pvt. Ltd. (2022) 441 ITR 543 / 210 CTR 57 / 324 CTR 640 / 286 Taxman 345 (Bom.)(HC)
S. 37(1) : Business expenditure-Expenses in providing free gifts Facilities to Medical Practitioners-Allowable as deduction-Expenses prohibited by law-Oppressive circulars would have prospective application.