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2018 (5) TMI 1929 - ITAT MUMBAIDisallowance with regard to honorarium to doctors, travel and stay facilities of doctors in connection with conferences/seminars, distribution of books, expenses on participating in exhibitions/sponsorships for conferences and provision of expenses included in advertisement and promotional expenses u/s 37(1) - HELD THAT:- In response to a query raised by the AO during the course of assessment proceedings, the assessee submitted a detail explanation indicating that the expense located by the AO were incurred wholly and exclusively for the purpose of business of the company and outside the purview of the said CBDT Circular. AO has extracted it at para 3.12 of his assessment order dated 08.03.2014. However, instead of examining the issue from accounts and verifying the same, the AO has resorted to psychological and legal aspects, which are in the realm of general propositions. We are reminded of the cardinal principle of law that general propositions do not decide a concrete case. There was no lack of compliance by the assessee to the queries asked and details called for by the AO. AO has failed to verify the same. Resultantly, the amended IMC Regulations relied on by the DR is not applicable to the instant case. Also it is settled law that the Circular issued by CBDT is prospective in nature. Thus the CBDT Circular No. 05/2012 dated 01.08.2012 is not applicable to the impugned assessment year. It has been rightly held in the decisions mentioned at para 5 hereinbefore.
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