AO noted that assessee had incurred various expenses towards appointment of faculty doctor or assessee ‘s consultant doctor in a medical conference. AO completed assessment and made additions of that expenditure to assessee’s income. The CIT(A) granted partial relief to assessee.
Before the Tribunal the revenue argues that AO disallowed expenditure by observing that such expenses were incurred by staff on behalf of doctors and accordingly was a freebie which was not allowable in light of circular.
The ITAT held that expenses were incurred by assessee during the conferences and in relation to sponsorship of conferences, It was abundantly clear that they were not incurred for doctors neither do they provide any benefit to doctors. Said expenses were incurred by assessee in day to day course of its business and were not prohibited by MCI guidelines. In medical conferences, doctors were provided skill set training wherein live surgeries were performed so as to educate doctors about use of new technologically advanced products. Therefore, expenditure incurred were not in violation of provisions of any statute.
Held in the case of Edwards Life Science (India ) Pvt Ltd v. Dy. CIT ITA No. 1553/Mum/2016, Dt. 21.11.2018 (Mum) (Trib.)