Freebies to doctors illegal: ITAT disallows Rs 1 crore business promotion expenses by Mankind Pharma on gift cards

Published On 2022-11-10 13:00 GMT   |   Update On 2022-12-08 07:19 GMT
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Denying relief to drugmajor Mankind Pharma Ltd., the Income Tax Appellate Tribunal (ITAT), Delhi has rejected its plea with respect to the disallowance of sale promotion expenses of more than Rs 1 crore to doctors by way of gift cards noting that freebies given to doctors are illegal and does not fall under the head "Business Promotion Expenses".

The bench comprising Anil Chaturvedi and Challa Nagendra Prasad, heard the appeal filed by Mankind Pharma against the order of the Deputy Commissioner of Income Tax. The drug maker submitted that no justification was given by the department in denying the sales promotion expenses incurred by the drug maker (assessee) in the form of freebies given to doctors.

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Freebies To Doctors Illegal: ITAT Disallows Rs 1 Crore Business Promotion Expenses By Mankind Pharma On Gift Cards

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