S. 37(1) : Business expenditure-Sales and business promotion expenses-Gifting freebies to dealers and stockists-Performance in meeting sales targets-Allowable as deduction-Circular No 5 of 2012 dt. 1-8-2012 prohibits the benefit of freebies directly or indirectly to medical practitioners 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 deduction. Circular No 5 of 2012 dt. 1-8-2012 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)
Dy. CIT v. Curosis Healthcare Private Limited (Jaipur)(Trib.) www.itatonline.org.
[Coram : Hon’ble Dr. S. Seethalakshmi, JM & Hon’ble Shri Rathod Kamlesh Jayantbhai, AM]