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Income Tax Appellate Tribunal, PUNE BENCH, ‘A’ PUNE
Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI
आदेश / ORDER
PER R.S. SYAL, VP :
These two appeals by the Revenue relating to assessment years 2014-15 and 2015-16 arise out of a common order passed by the CIT(A)-12, Pune on 31-12-2018.
The only issue raised in these appeals is against the deletion of addition of Rs.2,97,38,239/- and Rs.2,21,74,806/- respectively on account of freebies provided by the assessee company to medical practitioners.
Briefly stated, the facts of the case are that the assessee is engaged in the business of manufacturing and sale of pharmaceutical products. It debited the above mentioned amounts as Advertisement and Promotion expenses incurred on gifts and freebies given to Medical practitioners. The Assessing Officer (AO) treated the said amounts as not allowable in terms of section 37(1) of the Act. The ld. CIT(A) accepted the assessee’s claim and deleted the above additions. Aggrieved thereby, the Revenue has come up in appeal before the Tribunal.
Having heard both the sides and gone through the relevant material on record, it is seen that the issue raised in these appeals is no more res integra in view of the judgment of the Hon’ble Supreme Court in Apex Laboratories Pvt. Ltd. Vs. DCIT (2022)
442 ITR 1 (SC) denying the benefit of deduction in the hands of pharmaceutical companies towards freebies provided to the Medical Practitioners. The ld. AR candidly accepted this legal proposition. In view of the above binding precedent, we overturn the impugned order and restore the above additions made by the AO.
In the result, both the appeals are allowed.
Order pronounced in the Open Court on 06th July, 2022.
Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 06th July, 2022 सतीश आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. The CIT(A)-13, Pune 4. The Pr.CIT-2, Pune 5. DR, ITAT, ‘A’ Bench, Pune गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune & 368/PUN/2019 M/s. Emcure Pharmaceuticals Ltd.,
Date 1. Draft dictated on 06-07-2022 Sr.PS 2. Draft placed before author 06-07-2022 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *