account of expenses classified as freebies confirmed by the ld.CIT(A)
may kindly be deleted.
ITA No.2458/Ahd/2017
2
2. The disallowance ... expenditure claimed as 'Non-freebies'
u/s.37(1) of the Act of Rs.1,00,67842/- under various heads
incurred for
distribution of costly articles (exceeding Rs.750/- each article) are freebies to
doctors and professionals.
3. For that ... without appreciating the fact that the expenditure was incurred for providing freebies
to medical practitioners and their professional associates in violation of regulation
issued
observed that these expenses were incurred by the
assessee company for providing freebies to medical practitioners and their
professional associations in violation of the regulations ... from inter alia, accepting
gifts, travel facilities, hospitality , cash or monetary grants (freebies) from
the pharmaceutical and allied health sector industries. It was pleaded
that
product and brand name etc. and these articles cannot be
reckoned as freebies given to the Doctors. It was further
submitted that since the assessee ... noted that the assessee's act of incurring
expenditure or providing freebies is an offence. The A.O,
therefore, following the Board Circular above
certain tangible
materials, which are now being called in common parlance as ‘freebies’.
18.2 Supreme Court Directives on Election Manifestos ... People Act, 1951, the reality cannot be ruled out that distribution of
freebies of any kind, undoubtedly, influences all people.
18.2.2 The Hon’ble Court
expenses' and 'other selling expenses' by providing gifts
and freebies to Doctors and Medical Practitioners is
prohibited by the Indian Medical Council ... expenditure under Section 37(1) of the
Act in respect of freebies provided to doctors, no
disallowance can be made for the current assessment
year
Writ of Mandamus to forbear the respondents herein from distributing
the freebies in the guise of Pongal Gift during the existence of Election Model Code ... Writ of Mandamus to forbear the respondents herein from
distributing the freebies in the guise of Pongal Gift during the existence of Election
Model Code
courtesy, accordingly, the same does not result in
any 'freebie' to the health care professionals;
Gifts
36. without prejudice to the above, erred
disallow expenditure incurred by
pharmaceutical companies inter-alia in providing 'freebies' to doctors in
violation of the MCI Regulations. The term "freebies ... expenditure so incurred by assessee does not amount to provision of
'freebies' to medical practitioners. The expenditure incurred
deleting the addition made by
the AO on account of giving freebies to the doctors in violation
to Medical Counsel of India (MCI) circular ... advertisement and publicity, that the AO had observed that it had gifted
freebies to the medical practitioners, that the departmental authorities were of
the view
