Swipe through the latest business and wealth clues with our android app

No justification to deny pahrma cos deduction of expenses incurred on freebies to doctors: ITAT

The ITAT ruled that pharmaceutical companies cannot be denied deduction of expenses incurred on providing freebies to doctors on the basis of a CBDT circular and the Indian Medical Council regulations. The IMC’s code of conduct applies only to medical practitioners and not to pharmaceutical companies and the healthcare sector, it said. The CBDT has no power to extend the scope of the IMC regulation to pharmaceutical companies without any enabling provision under the Income Tax Act. The ITAT said CBDT circulars cannot impose a burden on an assessee by enlarging the scope of a regulation issued under another act.

©2020 TheNewsClues