During assessment proceedings, AO noticed that assessee had debited an amount to P&L account towards gift\/sales promotion expenses. The expenditure incurred was for providing gift to Doctors\/Medical Practitioners. As per CBDT circular no.5\/2012, Medical Practitioners were prohibited from accepting gift, travel facility, hospitality, cash or monetary grant from pharmaceutical companies as per Indian Medical Council Regulation. The AO made addition on ad-hoc basis considering 40% to have been spent for presenting gift articles to doctors in India. The CIT(A) confirmed AO\u2019s action. The assessee contended that said gift items bearing assesses name and logo were only for sales promotion. The reason for making an ad-hoc disallowance of 40% was, CBDT Circular no.5\/2012, wherein, prohibition imposed by IMC with regard to acceptance of gift by medical practitioner\/doctor which was imposed w.e.f. 10th December 2009. The prohibition imposed by IMC did not talk about pharmaceutical companies. CBDT Circular referred to by Departmental Authorities would not apply retrospectively. Allowing the assesses ground, the tribunal deleted the disallowance made. \u00a0(AY. 2009 -10 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure \u2013Providing gifts to Medical practitioners by pharmaceutical companies \u2013CBDT circular silent about pharmaceutical companies \u2013 Circular had no retrospective effect \u2013 Prohibition imposed by Indian Medical Council against acceptance of gift is on the medical practitioner and doctor and not on the pharmaceutical companies -Disallowance is deleted . <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10435","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Ij","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10435"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10435\/revisions"}],"predecessor-version":[{"id":10436,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10435\/revisions\/10436"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}