{"id":11411,"date":"2020-05-17T07:27:10","date_gmt":"2020-05-17T07:27:10","guid":{"rendered":"http:\/\/itatonline.org\/digest\/pcit-v-merck-ltd-2020-185-dtr-401-312-ctr-242-bom-hc-4\/"},"modified":"2021-08-08T15:50:35","modified_gmt":"2021-08-08T10:20:35","slug":"pcit-v-merck-ltd-2020-185-dtr-401-312-ctr-242-bom-hc-4","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/pcit-v-merck-ltd-2020-185-dtr-401-312-ctr-242-bom-hc-4\/","title":{"rendered":"PCIT v. Merck Ltd. (2020) 185 DTR 401 \/ 312 CTR 242\/ 275 Taxman 181 \/ ( 2021 ) 434 ITR 596  (Bom.) (HC)"},"content":{"rendered":"<p>While allowing the deduction the Tribunal held that held that so long as the expenses have been incurred wholly and exclusively for the purpose of business, whether necessary or not are to be allowed as expenditure. \u00a0Relied on\u00a0<em>CIT v. ChandulalKeshavlal&amp; Co. 38 ITR 601 (SC) <\/em>\u00a0and\u00a0<em>Sasoon<\/em>\u00a0J.\u00a0<em>David &amp; Co. v. CIT 180 ITR 261 (SC) <\/em>\u00a0wherein it has been held that the expenditure incurred voluntary on account of commercial expediency and wholly and exclusively for the purpose of trade, then it is allowable expenditure. The Court in the above case observed that it is pertinent to note that the words &#8220;wholly and exclusively&#8221; used in S. \u00a037 of the Act does not mean &#8220;necessarily&#8221;. Thus, it is for the assessee to decide whether the expenditure should be incurred in the course of his business and once it is found that it is incurred wholly and exclusively for the purposes of business, then it is deductible under S. \u00a037 of the Act. It further records that it is relevant to note that an attempt was made to introduce the word &#8220;necessity&#8221; in S. \u00a037 of the Income Tax Bill of 1961. However, this had led to public protest and resulted in dropping the word &#8220;necessity&#8221; when the Income Tax bill of 1961 was passed into the Income Tax Act, 1961. Thus, the view of the Tribunal on this issue cannot be faulted as it is in accord with the Supreme Court decisions referred to hereinabove.Dismissing the appeal of the revenue the Court\u00a0 held that\u00a0 sales promotion expenses\u00a0 is held to be allowable as business expenditure.\u00a0 High Court affirmed the order of Tribunal. (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure\u2013Sales promotion expenses\u2013Held to be allowable as business expenditure. <\/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-11411","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Y3","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11411","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=11411"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11411\/revisions"}],"predecessor-version":[{"id":21012,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11411\/revisions\/21012"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=11411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=11411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=11411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}