towards sales promotion expenses u/s. 37(1) of the
Act, towards freebies paid to Doctors amounting to Rs.
21,08,795/-, disallowance of deduction ... disallowed sale promotion
expenses in the nature of freebies distributed to Doctors and
:-6-: ITA. No:1176 /Chny/2018
other medical professionals on the ground
appreciate that there is no prohibition on the pharmaceutical
industry from giving freebies and gifts to distributors and retailers.
3 I.T.A. Nos.3537 ... disallowed u/s.37(1), the
disallowance should have been restricted to freebies and gifts
received by medical practitioners.
9. For that the Commissioner
ground
that the same were with regard to providing gifts/freebies to Doctors and
Medical Practitioners and the same was against the Medical Council ... therefore till 14.12.2009, the amendment of
the gifts/freebies to the Doctors and Medical Professionals did not fall
within the purview of the explanation
after making
disallowances of Rs.6,82,388/- towards freebies and Rs.12,72,710/- relating to
hiring and earth-filling expenses ... vide order dated 17.11.2025
sustained penalty levied on freebies and deleted the penalty levied on
disallowance
dated 1.8.2012 wherein it was held that
business expenditure incurred in providing freebies to medical practitioner by
pharmaceutical and allied health sector industry ... assessee in Asst Year 2002-03 would be in the nature of
freebies, gifts etc given to doctors which is prohibited as per statute
were prohibited by law, wherein it was held that since
acceptance of freebies by medical practitioners was punishable as per
Circular issued by Medical Council ... India under MCI regulations, 2002,
gifting of such freebies by assessee-pharmaceutical company to medical
practitioners would also be prohibited by law and thus, expenditure
Ethics)
Regulations, 2002, expenditure incurred by the taxpayer by way of
freebies and gifts to doctors and medical practitioners was not
allowable business expenditure under ... expenses incurred on doctors and medical practitioners, by way of
freebies and gifts, are within the scope of the said proviso. The Tax
Tribunal held
with respect to the persons to whom the
assessee has given the freebies.
3. The grounds of cross-objections in AY 2013-14 read ... event, having held that the CBDT Circular restricts giving gifts and
freebies to Doctors and not to expenses incurred on business promotion by pharma distributors
Taxmann.com 286; 22.02.2022),
in the context of freebies / gifts to medical practitioner, held as under: -
Analysis and Conclusions
17. An examination of the relevant
also stated that the assessee company had not
distributed the freebies namely DVD players and silver coins to any
medical practitioner but only to Tablets
