Radha Swami Satsang vs Income-Tax Officer on 26 April, 1982
In our considered
view, principles of Res judicata is not applicable to income tax proceedings although we are fully
agreeable that principles of consistency is to be maintained (Hon'ble Supreme Court decision in
Radha Soami Satsang v. CIT (1992) 193 ITR 321 (SC) but in the instant AY., we have observed
that these overseas trips for Doctors and their spouses were organized by the assessee whereby no
details of the contents of seminar, if any conducted by the assessee overseas has been brought on
record and also even the spouses accompanied the Doctors to the overseas trip which included
cruise visit to island, gala dinners, cocktail, gala entertainment etc. rather than being directed
towards seminar for product information dissemination or directed towards knowledge
enhancement or knowledge sharing oriented as no details of seminar and its course content is
brought on record rather the trip is directed towards leisure and entertainment of Doctors and their
spouses which in our view appears to be clearly a distinguishable feature in this year enabling us
to take a divergent view and the expenses incurred by the assessee cannot be allowed as business
expenditure u/s. 37 of the Act as it is clearly hit by explanation to Section 37 of the Act being
against public policy as unethical prohibited by law. In view of the above, he pointed out that in
the above decision for A.Y. 2009-10 in the case of Liva Healthcare, there was a specific finding
8
2880/Mum/16.Bayer.