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Assessee is in appeal before the Tribunal against order of ld.CIT(A)- 8, Ahmedabad dated 18.9.2017 passed for the Asstt.Year 2010-11.

2. Assessee has taken five grounds of appeal along with sub-grounds which are running into 9 pages, and thus not in consonance with Rule 8 of Income Tax (Appellate Tribunal) Rules, 1963. However, at the end of the grounds, the assessee has made a prayer clause, which reads as under:

"1. The disallowance u/s.37(1)of the Act of Rs.3,55,20,081/- on account of expenses classified as freebies confirmed by the ld.CIT(A) may kindly be deleted.

2. The disallowance of expenditure claimed as 'Non-freebies' u/s.37(1) of the Act of Rs.1,00,67842/- under various heads i.e.

a) Business convening expenses of Rs.11,76,363/- confirmed by the ld.CIT(A) by enhancement of Rs.11,000/- may kindly be deleted.

b) Disallowance of CME expenses of Rs.8,88,202/- confirmed by the ld.CIT(A) may kindly be deleted.

Sr Nature of Total Gifts Hospitality Travel Moneta Total Non-

         No expenditure                                                     Facility    ry     Freebies freebies to
                                                                                        Grants     to doctors   doctors


         1   Business             14,26,925     -             89,440        4,000       -          93,440       13,33,485
             convention

         2   CME Expenses         59,21,348     -             -             -           -                       59,21,348


         3   MCM Expenses         45,06,717     -             -             13,672      -          13,672       44,93,045

         4   Promotional          4,46,29,897   1,43,97,423   -             -           -          1,43,97,423 3,02,32,474
             Material

         5   Patron Networking    1,61,80,203   1,56,74,305   33,406        4,000       60,000     1,57,71,711 4,08,492
             Expenses

         6   Sales promotion      71,91,609     43,814        29,37,485 3,809           1,000      29,86,108    42,05,501
             expenses

         7   Travelling           22,74,606                   5,15,849      17,41,878              22,57,727    16,879
             Expenses       for
             Doctors





            Total                8,21,31,305      3,01,15,542    35,76,180 17,67,359 61,000          3,55,20,081 4,66,11,224




      Sr no. Nature of expenditure Non-freebies to              Percentage   Intended            Actual disallowance
                                        doctors                              disallowance        mentioned in order


      1      Business convention        13,33,485               100%         13,33,485           11,65,365

      2      CME Expenses               59,21,348               15%          8,88,202            8,88,202


      3      MCM Expenses               44,93,045               25%          11,23,261           11,26,680


      4      Promotional Material       3,02,32,474             20%          60,46,495           60,46,495



             Expenses

      6      Sales promotion expenses 42,05,501                 20%          8,41,100            8,41,100



             Doctors

             Total                      4,66,11,224                          1,02,32,543         1,00,67,842

5. A perusal of the above details would indicate that the assessee has debited under different heads viz. business convention, CME expenses, MCM expenses, promotional material, patron networking expenses, sales promotion expenses, travelling expenses. In the first column, it has shown the nature of expenditure. Thereafter, shown total quantum of expenditure and thereafter bifurcated this expenditure under heads, gifts, hospitality, travel facility, etc. The ld.AO on an analysis of both these tables arrived at a conclusion that freebies given to the doctors at Rs.3,55,20,081/- is an unallowable expenditure under section 37(1). Similarly, certain expenditure, which were not in the nature of freebies, but in the opinion of the AO, these are equated to freebies, and he worked out a disallowance at Rs.1,02,32,543/-.