DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE -2 (1),, PUNE vs. M/S. EMCURE PHARMACEUTICALS LTD,, PUNE

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)