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TMI Blog2018 (5) TMI 1929X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installation of stalls rather it was a cash sponsorship prohibited by Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002. 3. The learned CIT(A)erred in not appreciating that the Circular No. 5/2012 dated 1 August 2012 issued by the Central Board of Direct Taxes has prospective effect and accordingly, the same is not applicable for the aforesaid assessment year. 3. Briefly stated, the facts of the case are that the assessee-company is engaged in the business of manufacturing and marketing/selling of drugs. During the course of assessment proceedings, the Assessing Officer (AO) observed that the Medical Council of India, in exercise of the powers conferred by section 33 of the Indian Medical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctors in connection with conferences/seminars 55,25,138 iii. Distribution of books 12,20,627 iv. Expenses on participating in exhibition/sponsorship for conferences 28,58,134 v. Other expenses (provision of expenses) 2,95,309 vi. HHC/CME Expenses in relation to promotional activity by Field ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 33 of the Indian Medical Council Act, 1956, with the previous sanction of the Central Government, amended the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations 2002, wherein clause 6.8 was inserted w.e.f. 10.12.2009. Thus the Ld. DR submits that the amended IMC Regulations are applicable to the impugned assessment year and rightly the Ld. CIT(A) has sustained an addition of ₹ 1,13,16,311/- made by the AO. 7. We have heard the rival submissions and perused the relevant materials on record. The reasons for our decisions are given below. In response to a query raised by the AO during the course of assessment proceedings, the assessee submitted a detail explanation indica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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