Pharmaceutical companies gifting freebies to doctors “prohibited by law”; cannot claim tax deduction: Supreme Court

A bench of Justices UU Lalit and S Ravindra Bhat held that if such pharmaceutical companies are allowed to claim tax exemption for the same, "it would wholly undermine public policy".
Pharmaceutical companies gifting freebies to doctors “prohibited by law”; cannot claim tax deduction: Supreme Court

The Supreme Court has held that pharmaceutical companies gifting freebies to doctors is clearly prohibited by law and it cannot, therefore, be claimed as a deduction under Section 37(1) of the Income Tax Act [Apex Laboratories Pvt Ltd vs Deputy Commissioner of Income Tax].

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