9911796707
Advanced Search 
TMI Blog2017 (9) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... is trying to get this view of this Tribunal reviewed under the garb of the present Miscellaneous Application, for seeking rectification of mistake. 4. We have heard the rival contentions, perused the material available on record. The Tribunal at in Para 3.2 decided the issue of allowability of expenditure related to sale and promotion expenditure claim by the assessee by observing as under:- "3.2 We have heard the rival contentions, perused the material available on record and gone through the orders of the authorities below. As per section 37(1), any expenditure not being expenditure of the nature described in section 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee laid out or expended wholly or exclusively for the purpose of business or profession shall be allowed in computing the income chargeable under the head Profits and Gains of business or profession. However, explanation to section 37(1) reads as under:- "Explanation - For the removal of doubts, it is herby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law hall not be deemed to have been incurred for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Counsel placed reliance on the decision of the Coordinate Bench in ITA Nos. 6429 & 6428/Mum/2012. In that case also the gift related to the Logo of the company. In the present case the assessee was required to demonstrate the expenditure in relation to business. So far the reasoning given by the AO that the expenditures were prohibited by law, in our considered view, this issue is covered by the decision of the Coordinate Bench. Therefore, in our view the issue requires fresh consideration by the AO. We thus set aside the order of ld. CIT (A) and restore the issue to the file of AO for decision afresh." 4. The submissions of the assessee as stated in para 2 to 4 of the Miscellaneous Application are reproduced herein below for the sake of clarity. "2. The ground nos. 1 to 3 of this appeal was against the action of Ld. CIT(A) in confirming the disallowance of Rs. 6,87,833/- out of sales & promotion and advertisement expenses on the ground that it is prohibited by the Indian Medical Council At, 1956 and thus disallowable in view of explanation to Sec. 37 and CBDT Circular No. 5/2012 dated 01.08.2012. 3. In course of hearing, the Ld. AR of the assessee referred to a decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no material suggesting that these payments were made towards commissioner for referring business towards the assessee. Therefore, this decision would not help the assessee. In making this observation it is ignored that this case is relied by the Ld. CIT(A) at page 12 of its order against the assessee and not relied by the assessee. The Ld. AR of the assessee in his written submission at page 4, Para 8 has distinguished this decision as the case of the assessee is not towards payment of commission to the doctors but for sponsoring the doctors for conference, reimbursement of expenses of doctors, etc. (iii) At page 4 last 2 lines, the decision relied by the Ld. AR in ITA Nos. 6429 & 6248/MUM/2016 in case of Syncom Formulations India Ltd. has been referred by the Hon'ble Bench and distinguished on the ground that in this case gifts related to the Logo of the Company but in the present case assessee was required to demonstrate the expenditure in relation to the business. It is submitted that in this case, the expenditure was not only on account of gifs bearing company logo to doctors but also towards sponsoring doctors for conferences and extending hospitality as evident from Para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haudhary, Jabalpur towards payment of TV purchase - Rs. 10,000 7. 01/07/2010 - Being cheque issued in favour of Dr. V.N. Rai, Bulandashahar towards reimbursement purchasing of Sony player - Rs. 2500 8. 19/08/2010 - Being cheque issued in favour of Dr. P.S. Girdhar, Thanjavur towards reimbursement of hotel charge - Rs. 1080 9. 01/09/2010 - Being cheque issued in favour of Dr. Shashi Bhushan Kumar, New Delhi towards reimbursement of purchase mobile phone - Rs. 8500 10. 01/09/2010 - Being cheque issued in favour of Dr. B.D. Khare, Bareli towards reimbursement of purchasing printer HP 14580 Ink jet - Rs. 4950 11. 01/10/2010 - Being cheque issued in favour of Dr. Dheeran gupta, Gurgaon, towards registration charges AIOC 2011 - Rs. 4750 12. 30/10/2010 - Being hotel expenses paid for Dr. Kartikeya Sangal, as per bill amount Rs. 11873/- less payment made by us Rs. 9445/- and balance amount paid by doctor 13. 26/11/2010 - Being cheque issued in favour of Dr. Satyajit Pal, North Tripura towards flight fare for attending AIOC 2011 - Rs. 12,000 14. 16/12/2010 - Being amount paid for doctor lunch - Rs. 5100/- 15. 29/12/2010 - Being amount paid for doctor gifts - Rs. 2300/- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
