He submitted that
both the above said judgments have been extensively considered
by the Mumbai Tribunal in DCIT v. PHL Pharma Pvt Ltd [2017]
163 ITD 10 (Mum).The Tribunal, after considering these
judgments concluded that the CBDT Circular No 5 of 2012
would not apply to allied medical companies.
In its order, the
Tribunal has noted the decision of the co-ordinate bench of
the Tribunal in Geojit Investments (supra).Thus, the allegation
of the Ld. PCIT is vague, ambiguous and devoid of any merit.
The Assessee therefore submits that there is no prejudice to
revenue that has been pointed out by the PCIT in exercising
38
I.T.A. No. 1528/Mum/2018
M/s SRL Diagnostics Pvt. Ltd.
23.6. Further, he submitted, the issue whether the net current
assets or gross current assets must be adopted for calculation of
disallowance u/s 14A was considered by the Ahmedabad
Tribunal in the case of Aditya Medisales Ltd. vs. ACIT
[2016] 67 taxmann.com 270 (Ahd).
In rejoinder, Ld AR submitted that Ld DR in his
submission submitted, CBDT circular binds the AO and payment
made to Doctors is to be disallowed and placed reliance on cases
Liva Healthcare (supra) and Kap Scan (supra).
assessee. The High Court, setting aside the order of the CIT,
held that power u/s 263 cannot be exercised to force upon an
officer to follow a Circular that expresses a view contrary to
law laid down by Courts.