9911796707
TMI Blog2018 (5) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... en assessed at Rs. 71.21 Crores after certain adjustments / additions / disallowances as against returned income of Rs. 56.55 Crores e-filed by the assessee on 24/09/2008. Besides original grounds of appeal, the assessee has filed additional grounds of appeal also vide its letters dated 18/05/2015 & 23/06/2017. Since the same do not require appreciation of new facts, the same are taken on record. During impugned AY, the assessee was engaged in the business of trading of Life Saving Devices. 2. The Ld. Authorized Representative [AR], at the outset, drew our attention to the fact that most of the issues raised in appeal are covered by the decision of this Tribunal for earlier years in assessee's own case and therefore, the same view may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extract from the said order is reproduced here-in-below:- 3.4.We have heard the rival submissions. We find that the TPO had held that assessee should have been compensated by its AE for the AMP expenditure incurred by it. We have gone through the agreements entered in to by the AE.s with the assessee, that in the agreements there is no condition about sharing of AMP, that the agreements talks of using best efforts to market and distribute the product or promote the products in a commercially reasonable manner. In our opinion, these terms do not give any indication that the AE and the assessee had to share AMP expenses. Secondly, if the AE was benefitted indirectly by the AMP expenditure incurred by the assessee, it cannot be held that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trip for doctors for going abroad to attend seminars and conferences for creating awareness about the company's products and update / educate them about the company's products and therefore, the expenditure is in the ordinary course of business and allowable u/s 37(1). Such sponsoring of foreign trips is necessitated by rapid development in the field of medical science both in terms of new products as well as diseases. The Ld. AR has also relied on various judicial pronouncements for the contentions that Medical Council of India [MCI] guidelines were applicable to professionals only and do not apply to other tax entities. It is further contended that CBDT Circular No. 05/2012 dated 01/08/2012 providing for disallowance of expenditure u/s 37 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly, by deleting this addition, we allow this ground of appeal. 7. Ground No. 19 is related with depreciation on Plant & Machinery & Building for Rs. 4,55,605/-.The same has been disallowed since these assets remained idle since manufacturing process stood discontinued. We are of the opinion that once an asset forms part of block of asset, it loses its individual identity and further, there is no requirement that each and every item in the said block should actually be used in the impugned AY so as to entitle the assessee to claim depreciation thereupon. Otherwise also, this issue stood covered in assessee's favor by the cited order of the Tribunal in assessee's own case for AY 2010-11. Therefore, this addition stand deleted. 8. Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence on our part. 11. Ground No. 25 & 26 is related with disallowance of expenditure on gift articles for Rs. 7,48,795/-. Upon perusal of para 8.3 of the quantum assessment order, we find that this addition has been deleted by Ld. AO himself and no such addition has been made in final computations and therefore, these grounds stands dismissed as infructuous. 12. Ground No. 27 is related with depreciation of on non-compete fees of Rs. 4.73 crores paid by the assessee in AY 2002-03 to an entity namely Medtronic Device Limited. The same was claimed u/s 37(1) in AY 2002-03 but the Tribunal vide its order ITA No. 811/Ahd/2008 dated 25/10/2016 held that the said expenditure was capital expenditure and in the nature of any other business or co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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