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Gujarat High Court

The Principal Commissioner Of Income ... vs M/S Liva Healthcare Ltd. on 30 July, 2019

Author: J.B.Pardiwala

Bench: J.B.Pardiwala, A.C. Rao

        C/TAXAP/418/2019                                     ORDER




  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                      R/TAX APPEAL NO. 418 of 2019

==========================================================
         THE PRINCIPAL COMMISSIONER OF INCOME TAX-1
                             Versus
                   M/S LIVA HEALTHCARE LTD.
==========================================================
Appearance:
MRS MAUNA M BHATT(174) for the Appellant(s) No. 1
DARSHAN R PATEL(8486) for the Opponent(s) No. 1
==========================================================

CORAM:HONOURABLE MR.JUSTICE J.B.PARDIWALA
      and
      HONOURABLE MR.JUSTICE A.C. RAO

                           Date : 30/07/2019

                 ORAL ORDER

(PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1.00. The revenue has proposed the following four substantial questions of law for the consideration of this Court:-

"[A]. Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.1,42,44,447/- being 70% of the expenditure in respect of physician sample distribution at free of costs?

[B]. Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.1,17,53,365/- made by the Assessing Officer on Page 1 of 3 Downloaded on : Wed Jul 31 23:18:04 IST 2019 C/TAXAP/418/2019 ORDER account of sponsorship of doctors foreign tour in view of the CBDT's Circular No.05/2012 dated 01.08.2013?

[C]. Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.61,28,797/- made by the Assessing Officer on account of sales promotion expenses in view of the CBDT's Circular No.05/2012 dated 01.08.2013?

[D]. Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.50,00,000/- made by the Assessing Officer rejecting the assessee's claim of exemption?"

2.00. We are not inclined to entertain this Tax Appeal so far as the proposed question [A] is concerned, as the same is covered by the decision of this court in the case of Principal Commissioner of Income Tax-1 Versus Liva Health Care Limited, in Tax Appeal No.478 of 2016 decided on 21/6/2016. We take notice of the fact that in Tax Appeal No.478 of 2016 the very same assessee was before this Court.

3.00. So far as the proposed question [D] is concerned, the same is also, the same is covered by the decision of this Court in the case of Commissioner of Income-Tax-I Versus Aditya Medisales Ltd., reported in [2013] 38 taxmann.com 244 (Gujarat) and therefore we are not inclined to entertain this Tax Appeal so far as the proposed question [D] is concerned.

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C/TAXAP/418/2019 ORDER 4.00. We are inclined to ADMIT this APPEAL on the following two substantial questions of law :

"[A].Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.1,17,53,365/- made by the Assessing Officer on account of sponsorship of doctors foreign tour in view of the CBDT's Circular No.05/2012 dated 01.08.2013?

[B]. Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs.61,28,797/- made by the Assessing Officer on account of sales promotion expenses in view of the CBDT's Circular No.05/2012 dated 01.08.2013?"

Sd/-

(J. B. PARDIWALA, J) Sd/-

(A. C. RAO, J) RAFIK..

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