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TMI Blog2019 (5) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... y both Assessee and the Revenue:- "i) Whether the Tribunal was right in law in holding that the expenditure incurred by the assessee which has resulted in the violation of the Amendment to the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 under the Medical Council Act, 1956, is not an allowable expenditure and hit by the Explanation to Section 37(1) of the Act? ii) Whether the Tribunal was right in law in holding that the expenditure incurred towards 'sales promotion expenses' and 'other selling expenses' by providing gifts and freebies to Doctors and Medical Practitioners is prohibited by the Indian Medical Council (Professional Conduct, Etiquette and Ethics) (Amendment) Regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses contrary to the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 promulgated by the Government of India. The Assessee had incurred certain expenditure for distributing gifts and freebies to the Doctors/Medical Practitioners. It was found that acceptance of such freebies and gifts by the Doctors/Medical Practitioners were prohibited by the said Regulations and therefore, the expenditure was found to be of illegal nature. The first Appellate Authority and the Tribunal disallowed the same after the Amendment in the Regulations were notified. The findings of the learned Tribunal in this regard are quoted below for ready reference:- "8. A perusal of the decision of Co-ordinate Bench of this Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perating retrospectively nor can it be treated as clarificatory in nature, clearly the said amendment is prospective in nature and operative from 14.12.2009. A perusal of the decision of the learned CIT(A) clearly shows that the learned CIT(A) has granted the assessee the benefit of the expenditure till 14.12.2009 and has restricted the disallowance by invoking the explanation to Section 37(1) of the Act for the period from 14.12.2009. This being so, we find no error in the findings of the learned CIT(A) which calls for any interference. 10. In the result, the appeal filed by the assessee and the appeal filed by the Revenue stand dismissed." 3. The Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations were ame ..... X X X X Extracts X X X X X X X X Extracts X X X X
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