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Expenditure aggregating to 1,20,66,377 was disallowedon the ground that these expenditure was in violation of clause 6.8 of the Indian Medical Council of India . The assessee mainly sells products falling within the cardiac care which consist of heart valve therapy products, cardiac pulmonary products & RMI products, critical care and vascular product lines. The assessee sells the products mainly to hospitals and other medical institutions. expenditure incurred on the sales staff during conference amounting to Rs. 31,98,259/-, we found that these expenses represent travel expenses, visa charges etc of the employees of the assesseeThese expenses are not incurred on the doctors/medical practitioners but are incurred wholly and exclusively for the purpose of business. expenditure alleged to be incurred on purchase / hiring materials during conference amounting to Rs. 8,06,705/- we found that these expenses represent printing, stationery, Xerox charges, and stall designing charges incurred by the assessee in relation to the sponsoring of conferencesThese expenses are also not incurred on the doctors/medical practitioners and are incurred wholly and exclusively for the purpose of business. expenditure incurred for participation / sponsorship of conference amounting to Rs. 87,36,056/- we found that these expenses represent the sponsorship chargeThis expenditure is incurred by the assessee to promote and create awareness about its product. These expenses are also not incurred on the doctors/medical practitioners and are incurred wholly and exclusively for the purpose of business. From the record we also found that the assessee does not provide any personal gifts or free holiday packages to doctors and hence no expense is incurred for such unethical practice. considering the nature of expenditure so incurred with reference to the judicial pronouncements referred above, we do not find any merit in the action of CIT(A) for upholding the expenditure incurred by assessee fully and exclusively for the purpose of business.

Shanti Prime Publication Pvt. Ltd.

Section 37 of Income Tax Act, 1961—Allowable business expenses—In the instant case, assessee filed appeal against order of CIT wherein CIT upholding the action of the DCIT in disallowing the expenditure aggregating to 1,20,66,377 on the ground that these expenditure was in violation of clause 6.8 of the Indian Medical Council of India .

Held that— Assessee's high end technological products and to carry out heart valve surgeries, which are very complex in nature, the doctors/surgeons also need training. In the medical conferences, the doctors are also provided skill set training wherein live surgeries are performed so as to educate the doctors about the use of the new technologically advanced products. Considering the need, the assessee nominates few selected doctors/surgeons to attend the training. These doctors/surgeons further provide training to other doctors so as to also make them also aware about the use of Assessee's product. It was also brought to our notice that these life saving devices necessary for the well-being of the society as a whole and it is in the interest of the patients that the doctors are trained.

After going through the details of expenditure so incurred, we found that the expenditure incurred by the assessee is not in violation of the provisions of any statute so as to render it excessive and inadmissible. The expenditure incurred by the assessee is on account of business exigencies and not in violation of any statute. - Decided in favor of assessee.[M/S. EDWARDS LIFE SCIENCE (INDIA) PVT. LTD. VERSUS DCIT – RANGE 8 (1) MUMBAI] [2018] [7] [ITCD Online] [52] [ITAT MUMBAI]