The assessee, a pharmaceutical company paid certain commission to doctors. The AO relying on Circular No. 5\/2012 dated 01-08-2012 ( 2012) 346 ITR 95(St).which prohibits pharmaceutical companies from giving any monetary benefits to doctors disallowed said payments of commission. The AO also passed a penalty order under section 271(1)(c) in respect of said disallowance. On further appeal, it was noted that Co-ordinate Bench of Tribunal in a case involving similar issue had held that Circular dated 01-08-2012 was applicable from assessment year 2013-14 onwards and, hence, disallowance made in relevant year on basis of said circular was not justified. Thus, in view of order passed by Co-ordinate Bench, impugned disallowance made by Assessing Officer was to be deleted and consequently penalty levied under S. 271(1)(c) was also deleted (ITA No. 2495\/Ahd.\/2016 dt. 22-12-2017) (AY. 2011-12).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure – Circular No. 5\/2012 dated 01-8-2012 ( 2012) 346 ITR 95(St) prohibiting pharmaceutical companies from giving any monetary benefits to doctors, was applicable from assessment year 2013-14 onwards- As the addition was deleted consequently penalty levied was also deleted . [S.271(1)(c)]<\/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-868","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-e0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/868","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=868"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/868\/revisions"}],"predecessor-version":[{"id":870,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/868\/revisions\/870"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}