{"id":25130,"date":"2022-02-23T15:34:24","date_gmt":"2022-02-23T10:04:24","guid":{"rendered":"https:\/\/itatonline.org\/digest\/apex-laboratories-pvt-ltd-v-dcit-sc-www-itatonline-org\/"},"modified":"2022-10-24T19:54:34","modified_gmt":"2022-10-24T14:24:34","slug":"apex-laboratories-pvt-ltd-v-dcit-sc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/apex-laboratories-pvt-ltd-v-dcit-sc-www-itatonline-org\/","title":{"rendered":"Apex Laboratories Pvt. Ltd. v. DCIT (2022)442 ITR 1 \/ 286 Taxman 200  \/ 211 DTR 73\/ 325 CTR 121    (SC) .www.itatonline .org Editorial : Finance Act , 2022 amended the section 37 (1) provision with effect from 1-4 -2022  clarifying that the expression \u201c expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law ."},"content":{"rendered":"<p>Honourable Supreme Court held that \u00a0pharmaceutical companies\u2019 gifting freebies to doctors, etc. is clearly \u201cprohibited by law\u201d, and not allowed to be claimed as a deduction under Section 37(1) of the Act. Doing so would wholly undermine public policy. The well-established principle of interpretation of taxing statutes is that they need to be interpreted strictly and cannot sustain when it results in an absurdity contrary to the intentions of the Parliament.\u00a0\u00a0 (SLP (Civil) 23207 of 2019 dated February 22, 2022) ( AY. 2010 -11 )<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1): Business expenditure \u2013 Explanation 1 &#8211; Freebies given to doctors \u2013 Prohibited by law \u2013 Disallowed as expense \u2013 Interpretation -Taxing statutes to be interpreted strictly.-Strict interpretation should not result in absurdity contrary to intention of  Parliament [Medical Council Act, 1956, S. 20A , Medical Council (professional Conduct, Etiquette and Ethics) Regulations, 2002, R. 6.8 ,  Contract Act , 1872 , S. 23 , General Clauses Act , 1897, S.2(38) , Indian Penal Code ,1860,  S. 40, 43 ]<\/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":[21],"tags":[],"class_list":["post-25130","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6xk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25130","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=25130"}],"version-history":[{"count":6,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25130\/revisions"}],"predecessor-version":[{"id":30412,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25130\/revisions\/30412"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=25130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=25130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=25130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}