Leeford Healthcare Limited, Ludhiana V. Pr. CIT (Central), Ludhiana

ITA 353/CHANDI/2022

2018-2019

Pronouncement Date: -

Result: Assessee

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Appeal Details

Counselvise Citation

[2022] 106 COUNSELVISE.COM (IT) 1828 (ITAT-CHANDIGARH)

Assessee PAN

Bench

Appeal Number

CRN Number

Duration Of Justice

3 month(s) 23 day(s)

Appellant

Respondent

Appeal Type

Income Tax Appeal

Pronouncement Date

28-07-2022

Appeal Filed By

Assessee

Order Result

Allowed

Bench Allotted

Assessment Year

2018-2019

Appeal Filed On

05-04-2022

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ,च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ A ” , C H A N D I G A R H B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & S H R I S U D H A N S HU SR I V A S T A V A , J U D I C I A L M E M B E R आयकरअपीलसं./ ITA Nos.343 to 353 /C H D / 2 0 2 2 नधा रणवष / Assessment Years : 2 0 0 8 - 0 9 t o 2 0 1 8 - 1 9 Leeford Healthcare Limited, Leo House, Dugri Dhangra Road, Shaheed Bhagat Singh Nagar, Ludhiana -141116 बनाम The PCIT, (Central), Ludhiana थायीलेखासं./PAN NO: AABCL1851A अपीलाथ /Appellant यथ /Respondent नधा रतीक ओरसे /Assessee by : Sh. Sudhir Sehgal, Advocate, and Shri Hitesh Bakoo, CA राज वक ओरसे/ Revenue by : Sh. VivekNangia, CIT DR स ु नवाईक तार#ख/Date of Hearing : 28.06.2022 उदघोषणाक तार#ख/Date of Pronouncement : 29.07.2022 आदेश/Order P er Ben c h : A l l t he s e a pp ea l s ha ve b ee n p r e f er r e d by th e A s s e ssee a s per t h e fo l l ow i ng d e t ai l s : - S . N o. IT A N o. A s s es s me n t ye a r C I T( A ) o rd e r d at e d 1 34 3/ Ch d / 2 0 22 20 08- 0 9 3 0. 03. 2 0 2 2 2 34 4/ Ch d / 2 0 22 20 09- 1 0 3 0. 03. 2 0 2 2 3 34 5/ Ch d / 2 0 22 20 10- 1 1 3 0. 03. 2 0 2 2 4 34 6/ Ch d / 2 0 22 20 11- 1 2 3 0. 03. 2 0 2 2 5 34 7/ Ch d / 2 0 22 20 12- 1 3 3 0. 03. 2 0 2 2 6 34 8/ Ch d /2 0 22 20 13- 1 4 3 0. 03. 2 0 2 2 7 34 9/ Ch d /2 0 22 20 14- 1 5 3 0. 03. 2 0 2 2 2 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 8 35 0/ Ch d /2 0 22 20 15- 1 6 3 0. 03. 2 0 2 2 9 35 1/ Ch d /2 0 22 20 16- 1 7 3 0. 03. 2 0 2 2 10 35 2/ Ch d / 2 0 22 20 17- 1 8 3 0. 03. 2 0 2 2 11 35 3/ Ch d /2 0 22 20 19- 2 0 3 0. 03. 2 0 2 2 1. 1 S i nc e t he s e a p pe al s i nv ol ve d i d e n t ic a l i s s ue s , t he y w e r e h e a r d t og e t he r a nd a r e b e i ng d i s po se d o f by t hi s co m mo n or de r fo r t he s a k e o f c on ve ni e n ce . 2. 0 T he f ac t s i n br i e f ar e t h a t t he m a i n i s s ue i n a l l the y e a rs un de r a pp e a l (w h e re i n a c t i o n u / s 26 3 o f t he I nc o me A ct , 196 1 [i n s h o r t ‘ t he A ct ’ ] h a s be en i n i ti a t e d) i s e xp en d it u r e i n c u r re d o n d is t r i b u t i o n o f gi ft s / fr e e b i e s t o do c t ors a nd M e d i ca l P r a c t i t i on ers i n t he f or m o f t el e v i s io ns , l ap t o ps , e l ec t ro ni c g o ods , mo b il e s , s pon s ors h i p o f t o ur s a n d c on f e re nc e s a n d d i s tr i b ut io n o f ot h e r s i mi l a r i t e ms w hi ch h a v e be en c ha rg e d a s e x p e nd i t ur e i n t he P r o fi t a nd L os s A c count u nde r t h e he a d ‘B us in es s P r o mo t i o n E xp e n d i t ur e’ . I n a l l t he ye ar s u nd e r a ppe a l, i t is t he o p i n io n o f t he L d. P r i nc i p l e C o mm is s i on e r o f I nc o me Ta x (P C IT ) t ha t s u c h e xp e n d i t ur e w a s n o t a l l ow ab l e i n t e r ms o f E x pl a na ti on t o s e ct i on 3 7( 1) o f t h e A c t be in g e x pe nd i t u re fo r a pur p os e w hi ch w as a n o f fe n ce or w a s pro h ib i t e d un d e r t he l a w . 3. 0 A t t he r e q u es t o f t h e L d. A R, IT A N o. 34 5/ Ch d/ 20 22 pe rt a in i n g t o A Y 2010 - 11 w a s t ak e n a s t he le a d c a s e . T he br ie f f ac t s o f t he c a s e i n A s s es s me n t Y e a r 2 0 1 0- 1 1 a r e t h a t t he a s s es s e e i s a l i m i t e d c o mp a n y a nd 3 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana fo r t h e y ea r u n d e r c o ns i de ra t i on, t he re tu rn o f in co m e w a s fi le d de c la ri ng i n c o m e a t Rs . 2, 51 , 9 8, 0 90 /- . A s ea r c h a nd s e i zur e o p e ra ti on u/ s 1 32 ( 1 ) o f t h e A c t w a s c a rr ie d ou t a t t he b u s in es s p re m is e s o f t he a s s es s e e co m pa ny on 2 3. 0 3. 20 18. I n vi e w o f t he s e a rc h h a v i n g b e e n c ar ri ed o ut , t h e a s s e s se e ’s c a s e w as re ope ne d a ft e r r ec or d in g o f r e a s ons a nd r e c o rd i n g o f s a t is fa c ti o n a nd n o t i c e u / s 1 53A of th e A ct w a s is s u e d. In r es p o ns e t o t he s ai d n o t i c e t he a s s es s e e s u b mi t te d t h a t t he or i g i n a l re t ur n fi l e d ma y be t re a te d a s t he r e t u rn fi le d i n re s p o ns e t o t he no ti c e i s s ue d u /s 1 53 A o f t he A c t. T h e as s e s s me nt u /s 15 3 A w as c o mpl e t e d a ft er m ak i n g a n a ddi t i o n R s. 52, 03 , 42 5/ - on a c c o u nt o f d i f fe r e n ce i n va l ua t i on in t h e c o ns t ru c t io n o f t he o ffi c e- cu m - godo w n bu i l d i n g o f t he a s s es s e e c o mp an y. 3. 1 T he r e a ft e r, t h e L d. P C IT L u dh ia na is s ue d no ti c e u / s 2 63 o f t he A c t on t he re as o ni ng t h a t t he e x pe n di t u re on a cc ou n t o f b us i ne s s pr o mo t i on w as not al l ow a b l e u /s 37( 1) o f t he A ct and a l t h o u g h t h e a s se s s e e ob j e c t e d t o t he i n i t ia t io n o f R e v i si o n a r y pr o c e e d i ngs , t he L d. P CI T d i d no t a cc ep t t he c on t e nt i o ns o f t he a s s e s se e a nd p ro cee de d t o h ol d t h at t h e A s s es s i ng o ff i c e r ( A O ) h ad a c c ep te d t he e x pl an at i on o f t he a ss e s s e e i n t hi s r e g a r d w i t ho u t p r op e r an a l ys i s o f t h e n a t u r e of e xpe nd i t ur e a nd w i th o ut ve ri fi c at i o n o f th e b en e fi c i ar i e s o f t h e g ift s a n d t h e fr e e bi es di s t r i b ut e d a nd, th e r e f or e , a ppa re nt ly t he A O h ad pa s s ed t he a s s es s me n t or d e r w i t ho ut e xa m i ni ng t he i s s ue a n d w i th o ut c a l l ing fo r pr o pe r de ta i ls a nd w it ho ut c a rry i n g o ut t h e ne c e s s ar y ve ri fi c a t io n w h i c h re s ul te d i n t he 4 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana a s s es s men t or de r b e i n g e r ro ne o us a n d pr e j u di c ia l t o th e i nt e r e st o f t he Re ve n ue . T he Ld. P CI T pr o c e e d e d t o s e t a s i d e t he a ss e s sme nt o rd e r w it h a di r ec t io n t o fra me fr es h a s s es s men t. 3. 2 N ow , t he as s e s s ee h a d a pp r o ac h e d t h is T r ib un a l c h a l l e ngi ng t he a ct i o n o f t he L d . P CI T i n s e tt i n g a s i d e th e as s e s s me n t o rd e r by r a is i ng t he f ol lo w i ng gr ou n ds of a pp ea l : 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld.. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld.. PCIT has not heLd. that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/ freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as 5 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts /freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 4. 0 T he L d . A R ( A u th o ri s e d R e p re s e n t a t i v e ) s ub m i tt ed t ha t t he a s s es s e e c o m p a n y ha s b e e n in e x i s t e n ce for t h e pa s t 1 6 ye a rs a n d w as m ai nl y e nga ge d i n t he b us i n e s s of m a n u fa c t u r i n g g e ne ri c me d i c i ne s , he a lt h ca r e pr o d uc ts e t c . a n d f o r t he ma r k et i n g fu nct i o n, t h e a s s es s e e 6 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana c o mp a n y ha d ap po i nt e d d i s tr i b u t o rs / s to ck i s t s a l l o ve r Ind ia w h o on l y ha n d l e t he s a l e s a n d d i s t ri bu t i on a n d t h at f u rt he r t he a s s es s e e co mpa ny ha d no d i r ec t l i n k o r c o nn ec t io n w i t h t h e d o c t o r s / me di ca l p r a ct i t i o n e rs . I t w as s ub mi tt e d t h at re gu l a r bo ok s o f ac c ou nt s ha ve b ee n ma i nt a i n e d by t he a s s es s e e a n d t h e bo o ks o f a c c o u nt a re a l s o re gul a r ly a udi t e d a n d th e r et ur n s o f in co me ha v e a l s o be e n fi l e d o n t h e b a s i s o f s uc h a u di t e d bo oks o f a cc ou n t. I t w a s s ub mi tt e d th at t he as s e s see c o m pa n y w as fr o m t i me t o t i me a s s es s e d u /s 14 3( 3 ) o f t h e A c t al s o b ut no ma j or a d d it i ons or di s a l l ow a nc e s h a d b e e n m a d e. H e d r ew o ur a t te nti on t o a Ch ar t s ho w i n g t he s t a tu s o f o ri gi na l as s e s s me nt s f ro m A s se s sm e nt Y e ar s (A Y ) 20 08- 09 to 2 0 1 8- 1 9 t o bu t t re s s t ha t no m aj or d i s a llow a n c e s or ad di t i o ns ha v e b ee n ma de . T hi s c ha r t i s b ei n g r e pr od uc e d h er ei n un d e r fo r a r ea dy r e fe re nc e: 7 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 4. 1 T h e L d . A R fur t h er s u b mi t te d t h a t t h er e w as a s e a rc h a n d s e i zu r e op e r a t i o n a t t he b u s in es s pre mi s e s o f t h e a s s es s e e on 2 3. 0 3. 20 1 8 a n d th e a s s es s e e s urr e n d e r e d a s u m o f Rs . 5 , 0 0, 23, 5 0 0/ - i n t h e h a n ds o f t he c o mp a n y a s w e l l as o n e o f t h e di re ct o r s . It w as s u bmi t te d t h a t th is s ur re nd e r w a s a l s o d ul y d is c l os e d i n t h e re tu rn o f i nc o me a nd t a x a t t h e ra t e o f 7 8% u / s 11 5B B E o f t he A c t w a s al s o pa i d b y t he c o m p an y as w el l a s t h e d i r e c t or. I t w a s fur t h er s ub m i t t ed th at fu r t h e r s o m e a dd i t io n s w e re a l s o ma de i n t h e a s s es sm e nt s fr a me d u/ s 1 53A o f t h e A c t bu t th e a s s e s se e di d no t e n t e r i n t o a n y li t ig at i o n b ut s et t l ed th e di s p ut e by a v a i li ng t h e be n e fi t o f th e ‘V i v ad se V is hv as S c he m e ’. 4. 2 It w a s su b mi t t e d t ha t s ubs e qu e nt t o a l l t hi s, th e L d . P C IT , L u dhi a n a pr o c e e d e d to i s su e s h ow c a us e n o ti c es u/ s 26 3 o f t h e A c t f or A Y 20 08- 0 9 t o A Y 20 1 8- 1 9 o n a l mos t id en t i ca l r ea s o ni n g a n d w o rd i n gs a nd th e ma i n r ea s o n fo r t he i s s ua n c e o f t he s ho w c au se not i c e s w a s t ha t a s pe r t he L d. P CI T, t he as s e s s ee ’s c l ai m o f b us i n es s pr o mot i o n e xp e ns e s i n t he pr o f it a n d l os s ac c o u nt w a s no t an a l l ow ab l e ex p e n d it ur e i n t e r ms o f t h e E x pl a n a t i on t o se c ti o n 3 7 (1 ) o f th e A ct . H e dre w o ur a tt e n t i o n t o t h e c o p y o f t he s how c a us e n ot i c e fo r A Y 2 0 10 - 11 w he re i n, t he m ai n i s s ue r a i s ed b y t h e L d . P CI T ha s be e n h i g hl i g ht ed i n p a r a g ra ph 2 a s unde r: - " T he as s e s s ee i s i n t h e b u s in e s s o f m a nu f ac tu r i n g an d di s t r i bu ti on of m edi c in e. I n t hi s i n d us t r y/ t r a de , i t i s o bs er v e d t h a t co m p ani e s /e nt i ti e s i nc ur h u ge e xp en d i t ur e un de r t h e he ad B us i n es s P r o m o ti o n , t hi s i nc lu des di s tr i bu t i on o f g i ft s a n d f r e eb i e s t o 8 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana D oc to r s /M e d i c al P r of es s i on a ls i n t he fo rm of T V I L apt op s /E l e c tr o ni c s G o ods / M ob i l e / T ou r i n cl ud in g s po ns or i n g c o n fe r en ce / F or e i g n T o ur an d D i st r i but i n g s im i l a r go ods , s m al l er go o ds . T hi s e xp en d i t ur e is no t al l o w ab l e a s p er t h e pr o v i s i o ns of s e ct i on 37 (1 ) re a d wi t h e x p l a n at i on o f t he In com e T ax A c t, 19 6 1. T he As s e s s in g O f f i c e r w h il e c om pl et i n g t h e as s e ss m e nt i n t h e c a s e o f Ph ar m a c om p an i e s i s r e qui r e d t o c on du c t en q ui r ie s a nd c al l f or d e t a i ls o f B us i ne s s Pr o m o ti o n an d S im i l ar E xp e ns e s l ik e t r av e l an d t o i de n t i f y ex pe n di t ur e not al l ow ab le an d t o d i s al l o w t h e s am e w h i le co m p le t in g t he as s es s m e nt ” . 4. 3 It w a s fu r t h e r s u b mi t te d b y t h e L d. A R t ha t i n t he s a me s ho w c au s e no t i c e i n p ar ag r a p h 3 , t he Ld . P CIT h as re f err e d t o th e Re gul a t i o n s fr a m e d by th e M e di c a l Co u nc i l o f I nd i a a nd ha s al s o re fe rr ed t o t he C B D T Cir cu la r o f 2 0 1 2 a nd h a s t he rea f te r s ta t e d t h a t ph a r m a c e u t i c a l c o m p a ni es w e re s pe ci fi c a l l y pr o h i b i te d t o g i v e a ny c ons i de ra ti o n i n t h e n a t u r e o f g i f ts , t ra ve l a n d hos p i t a li t y fa c i l i t i es , c as h or mo ne ta r y g ra nt s o r a n y o t h er gi ft s o r g ra nt s t o M e d ic a l P ra ct i t i o ne rs or d oc to rs . I t w a s s ub m it t ed t h a t th e L d. P C I T h ad o bs er v e d th at t h e e xp e n di t u re b o o ke d by t he a s s e s se e u n de r t he h e a d ‘bus i n e s s pr o mo t i on e xp e ns e s ’ h a d be e n a ll ow e d b y t h e A O w i t hou t c on du ct i ng ne c es s a r y ve r i fi c a t i on an d i n qu i r i e s i n t o t he na t ur e o f s u c h e x pe n di t ur e t he r e b y re s ul t i n g i n t h e a ss e s s me n t b ei ng re n d e r e d e rr on eo us a s w e l l as pr e j u di c ia l to t he i n t er es t o f t h e Re v e n u e. 4. 4 T he L d. A R s ub m i t t e d t ha t t h e as s e s see h a d s ub mi t t ed i d en t i ca l / c o mm o n r e p l i e s t o t he L d. P CI T i n re s po n s e to t h e sai d s how c a u s e 9 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana no t i c es but s u ch r e pl i es o f t he a s s es s e e di d no t fin d an y fa vo ur w i t h t h e L d. P CIT a n d t h e L d. P CIT ha d o bs e r ve d t ha t s u ch b us i ne s s pr o mo t i on e xp e n di t u re w as n o t a n a l l o w a bl e e xp en d it ur e i n t e rms o f s ec t i o n3 7 ( 1) o f t he A c t a nd ha d re fe rr e d on c e ag ai n t o t he Re gu la t i o ns is s u ed b y t he M ed ic a l C o un c i l o f I nd i a be f or e s e t t i n g as i d e t he as s e s s me nt o rd er s o n t he gr ou n d t ha t t he A O had n o t c on du ct e d du e a n d re l e v a nt i n qu ir ie s i n t hi s re g ar d. 4. 5 T he Ld . A R s ub m it t e d t h a t t he s h ow c a us e n o t i c es a nd t h e or d ers pa s s ed u /s 26 3 o f t he A c t w e r e al m os t on i de nt ic al l i n e s i n a l l t he ye a rs un der c o n si d e ra t i o n e x c e pt fo r A Y 20 1 7- 1 8, w he re i n, t he re w a s an a dd i t io n a l i ss u e re l at i ng t o t ra ns f er p r i ci n g. T he L d. A R s u b mi t t ed t ha t on t he is s u e o f a l l o w b il i l t y o f b us i n e s s pr o mo ti on e xp e nd i t u r e a nd on t he i s s ue o f w he t h er o r no t t he A O ha d ma d e r e l e v a nt a n d p ro pe r i nq u i r i e s , h is a rg u me nt s w e re al s o g o i n g t o b e i de nt i c a l . 5. 0 H ow e ver , fo r t he s a ke o f c o m p l et e n e ss , th e g r ounds r ai s e d by t h e a s s es s e e i n a l l t h e ot h e r a pp e a ls ar e al s o b e i n g r ep rod u c e d h er ei n un der :- 343/Chd/2022 (A.Y. 2008-09) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 10 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has notheld that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals. during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry’ on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper 6. That the Ld.. PCIT (Central), Ludhiana has wrongly refer to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 11 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an acceded fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 344/Chd/2022 (A.Y. 2009-10) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has not hel. that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original 12 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 13 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 346/Chd/2022 (2011-12) 1. That the Ld.. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld.. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld.. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing 14 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana Officer is wholly improper. 6. That the Ld. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 347/Chd/2022(A.Y. 2012-13) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld.. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT 15 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection 16 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 348/Chd/2022(A.Y. 2013-14) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld.. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld.. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 17 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 349/Chd/2022 (A.Y. 2014-15) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is 18 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana void-ab-initio since, while passing the order, the Ld. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 19 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 350/Chd/2022(A.Y. 2015-16) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of 20 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 351/Chd/2022(A.Y. 2016-17) 21 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld.. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the L.. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT 22 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 352/Chd/2022(A.Y. 2017-18) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld. PCIT (Central), Ludhiana, having considered the replies filed by the 23 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. That the Ld.. PCIT (Central), Ludhiana has erred in setting-aside the issue to the file of the Assessing Officer on the issue of non- making of TP reference as per his finding in para 6.2 of the order, without considering the facts that in the case of the other concern, for which, the TP reference was made i.e. 'All Kind Healthcare Unit', TP reference had been made, no adverse order was passed by the TPO and, therefore it wouLd. be futile exercise to set-aside the case to the file of the AO on this issue. 24 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 8. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 9. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 353/Chd/2022(A.Y. 2018-19) 1. That the Ld. PCIT (Central), Ludhiana has erred in assuming the jurisdiction to issue notice u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the assessment already framed by the AO vide order dated 30.12.2019 to the file of the Assessing Officer, with the direction to pass the assessment order, afresh in accordance with law, after granting sufficient opportunity to the assessee. 2. That the order as passed by the Ld. PCIT (Central), Ludhiana is void-ab-initio since, while passing the order, the Ld. PCIT has not held that the assessment as framed by the Assessing Officer vide order dated 30.12.2019, is erroneous and prejudicial to the interest of revenue and having not satisfied the basic condition, for cancelling the valid assessment order of the Assessing Officer vide order dated 30.12.2019, the order as passed by the Ld.. PCIT (Central), Ludhiana is non-est. 3. Notwithstanding, the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana, having considered the replies filed by the assessee, on the issue of expenditure under the head 'business promotion', which did not include any gifts/freebis to the doctors and Medical Professionals, during the course of original assessment proceedings and during the course of assessment proceedings u/s 153A/143(3) and, therefore, setting aside the issue, again to the file of the AO, is wholly misconceived and not proper. 4. That the Ld.. PCIT (Central), Ludhiana having noted the fact from the assessment file that no expenditure was incurred on account of any gifts/freebis to the doctors/medical professional and the 25 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana Assessing Officer, also having applied mind on the same issue, both during the course of original assessment u/s 143(3) and the assessment u/s 153A/143(3), the setting-aside of the assessment as framed, after due application of mind by the AO, is against the facts & circumstances of the case and the settled law on the subject. 5. That the Ld.. PCIT (Central), Ludhiana has erred in hoLd.ing that there was 'lack of enquiry' on the issue of gifts/freebis, as it has been categorically stated that there was no such gifts/freebis to the doctors as per the assessment records of the assessee and, thus, the cancellation of the assessment, already framed vide order dated 30.12.2019, after due application of mind by the Ld.. Assessing Officer is wholly improper. 6. That the Ld.. PCIT (Central), Ludhiana has wrongly referred to the 'Medical Counsel Regulation Act, 2002' and also to the CBDT Circular No. 5 of 2012 dated 01.08.2012 and the judgment of the 'Apex Court' in the case of 'Apex Laboratories Pvt. Ltd.' in para 5.8 of the order, regarding the provision by law of the gifts/freebis to the medical practitioner, since it is an accepted fact and borne out from the assessment records of the assessee, that no such gifts/freebis had been given to the medical practitioners and hence, reliance by the Ld.. PCIT (Central), Ludhiana on said circulars and of the Apex Court judgment is improper. 7. Notwithstanding with the above said grounds of appeal, the Ld.. PCIT (Central), Ludhiana has wrongly assumed the jurisdiction u/s 263 on the basis of the audit objection, which was not accepted by the department and no valid jurisdiction could have been assumed by the Ld.. PCIT (Central), Ludhiana on the basis of audit objection as per the binding judgment of the Jurisdictional Bench of the ITAT, Chandigarh Bench and of the Hon'ble Punjab & Haryana High Court. 8. That the appellant craves leave to add, amend, alter any of the above grounds during the appellate proceedings have been considered. 6. 0 T he L d . A R s ub m it t ed t h a t t h e i s s ue o f fr ee bi e s or gi ft s w h ic h ar e gi v e n t o s to c k i s t s a nd d is t ri bu t o r s a r e n ot c o ve re d b y t he g u i d el i n es i s s ue d b y t he M e di c a l C o u nc il o f I nd i a a n d t ha t t he g u i d el i n e s / 26 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana re g u l a t i o n s w e re on l y ap pl ic a bl e i n th e ca s e o f me di ca l p r a ct i t i o n er s a n d / or do ct or s. It w a s s ub mi t t e d b y t h e L d. A R th at i t w a s a pp a r e n t fr o m t he a s s e ss m e n t pr oc e e d i n gs t ha t t h e di ff er en t A O s in t he c ap t i o n e d a s s es s men t y e a rs un d er a p p e a l ( bot h i n t he or i g i na l a s s es s m en t pr o c e e d i n gs u/ s 14 3( 3 ) o f t he A c t a n d a s s es s men t p roc e e di n gs u/ s 1 53A ) ha d d ul y i nq ui r e d i nt o t h e i s s ue o f f re eb i e s an d g if ts b u t s i nc e t h er e w a s no l i n k o r c o n ne c t i o n t o b e fou n d bet w e en s u c h fre eb ie s / gi ft s a n d m e di c al pr a c ti t i o n e r s / do c t o r s, t he is s ue o f m a k i ng a ny d is a l l o w an c e u /s 37 ( 1) o f t h e A c t d id n o t a r i s e. It w a s su bm it t ed t ha t th e fa c t o f no t ha v i n g gi v e n a ny fr ee b i e s o r g i ft s to d o ct or s / m edic a l p r a c t i t io ner s ha d be e n t he s u b j e c t m a t t e r o f v e ri fi c a t i on an d i n q ui ries by t h e v a r i o us A Os a nd, t h er e f o re , th e r e w as d ue a ppl i c a t i o n o f m in d on t he p ar t o f t he A O . 6. 1 T he r e a ft e r, t he Ld . A R re fe rre d t o t he fo l l ow i ng c o p ie s of t h e re p l i es s ub mi tt e d be fo r e t h e A O fo r t h e va r i o u s A Y s unde r c ons i de ra ti o n : 6. 2. 1 A s s ess me nt Y e a r 2 01 0 -1 1: i) T he Ld. A R r e fe rr e d t o c e r t i fi e d c o p y o f t h e r e pl y, d a t ed 08 . 0 1. 2 01 3 as ob t a in e d fr o m t he D C I T , CC - II I, Lu d hia n a an d as s ub m i tt e d du ri ng t he or ig in al a s s es s m ent p roc ee di ngs for A Y 20 10- 1 1 a nd r e fe r r ed t o S . N o . 9 o f t he re pl y a t p a g e 2 o f t he P ap e r Bo o k -1 , i n w hi c h , t he fo l l ow i n g s ub m i ss i on s w e re mad e :- 27 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana " 9. Cop ie s o f b il l s abo ve R s . 50 0 0 0/ - e x pen de d u n d er he a d Bu s i n es s Pr om ot i on d ur i n g t h e as s e s s m en t y e ar 20 1 0- 2 0 11 ar e e n cl os e d. T he b us i n e s s pr o m o ti o n e x pen s es i nc u r r ed by th e c om p an y d ur i ng t h e as s e s s m e nt ye ar 20 10- 2 0 11 ar e o n ac c ou nt of pr om ot i on a l i t e m s p u rc ha s ed by t he c om pan y an d d i sp a t c h ed t o t h e di s t r ib ut er s / s t o c k i e s t s o n sc he m es gi v en by t h e c om p an y f r om t im e t o t i m e to e n h an c e th e s al e s . T he co m p an y u s ua l l y g i ve s t h e s ch em e s t o i ts di s t r ib ut or s / s t oc k ie s t s/ r e ta il e r s t o p ro v i d e t h e pr o m o ti on al i t em s f r ee of c os t o n ac hi e ve m e n t o f s al es t ar ge t s g i v e n by t h e c om p an y . P l ea s e f i n d e nc lo s e d as s am pl e c o py of o ne of s c he m e c i rc ul a t e d d ur i ng t h e f i n an c i al y e ar 2 00 9-2 0 1 0. Al s o f i n d e nc lo s e d 5 S al es B il l s ( as s am pl e B il l s ) g i v i n g p ro of o f P r om ot i o n al i t e m s be i ng d i s pa t c he d to di st r i bu t or s . F ur t h er B us i nes s pr o m o ti o n e xp e n s es al s o in cl ud e s th e e xp en se s o n a cc ou nt o f p ur c h as e o f cat al og ue s, vi s ua l ai ds an d pr i ce l is t s of th e c om pa n y t o b e ci r c u l a t ed t o t he d is t r i b ut or s / s to ck ie s t / r e t a il e r s a nd t o th e mar k et i n g s t af f o f t he c om pa n y . " 6. 2. 2 T he L d . A R fu rt he r re fe rre d to t h e n u m e ro us d e ta i ls fi l e d du r i n g t h e o r i g in a l a s s e s sme n t p r oc ee d i ngs s uc h as c er ti fi e d le dg e r c op y o f t h e bus i ne s s pr o m ot i on e x pe ns e s i n t he bo o ks o f a c c o un t s o f t he a s s es s e e fo r a s s e s sme nt ye a r 20 10 -2 0 1 1, w hi c h de sc ri be d t h e na tu re a n d de s c r i p ti on o f e a c h a n d ev er y ex pe n di tu re as ma d e un de r t h i s he a d, a lo ng w i t h ' b ro c h u re o f va ri ous pr o m o t i o n s c he me s ' l a un c h e d f or t h e D i st r ib u t o rs / S t o c ki s t s of th e co m p a n y, c e rt i fi e d sam pl e c opi e s o f th e s a le b i l l s i ss u ed t o D i st r ib u t o rs / S t o c ki s t s , w he re in al on g w i t h t h e s a le o f 'G e n e r i c M e d i ci ne s ', c er t ai n pr o mo t i o n al i t e ms w e r e g i v e n a s " F re e" i n t he f or m o f gi ft i t e ms , t o p r o ve t ha t n one o f t h e gi ft / F re e bi e s , ha ve b e e n gi v e n t o D oc t o rs / M edi c al P ra c t i t io n e rs . Th e L d. A R a l so re fe rre d t o c er ti fi e d c o p y o f t he o r de r s he et e n t ri e s i n r es p e ct o f pr o c e e d i n gs o f 28 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 's c r u t i n y c as e , for A Y 2 010 - 11 an d s pe ci fi c al l y r ef er r e d to t h e or de r s he e t en tr ie s , d at e d 0 8. 0 1. 20 1 3, 16. 0 1 . 2 0 13 a n d 1 8.01 20 13, as pe r p a g e no s . 22 & 23 o f P a p er B oo k- 1, w h ic h a re b ei ng r e p r od uc e d a s u nde r: - " 08. 01 . 2 01 3 : P r e se nt S h. Vi ka s G ar g, Co un s el of as se s see , f il e d r ep ly t o t h e qu er i e s r a is e d i n l as t d is c us s i on. T he P ho to co p y of bi l l s wer e pe r us e d & r e t ur ne d b ac k. T he c ou n s el w as or de r e d to fi l e t h e de t a i l s of t h e f o llo w i n g : (a) T o pr odu ce th e o r i gi n a l b i l ls of e xp e ns e s : (i ) B us i ne s s pr om ot i o n (i i ) T r a ve l l i n g (i i i) A dv er t i s em e nt (b) H i gh a m oun t of r at e of i n t er e s t p a i d t o s o m e par t i es on uns e c ur ed l oa n s. (c ) In t e r e s t c ap i t al iz a t i on o n b ui l d in g un d er c ons t ruc ti o n (d) Ba si s of s ur r e nde r dur i n g s ur v e y (e ) B as i s o f s ha r e c ap i t al f or s ha r es i ss ue d dur i n g t h e ye ar , al o ng w it h t he b an k ac c ou nt (f ) D e ta i l s of am ou nt r e du c e d f r om c om pu t at i o n u/ s 40 A Ne x t da te o f hea r i n g 16/ 01 / 2 0 1 3 16. 01 . 2 01 3 : Pr e s e nt M r. V i k as G ar g , f i l e d r e pl y f or t h e que r i es r ai s ed i n la s t di s c u s s io n. A s ke d t o p r o du c e t he or i gi na l b i l l s of b u s i ne s s pr om ot i on e xp e n se s , adv er ti s e m e nt , bui l d i n g c o ns t r uc t i o n f or v er i f ic a t i on . Ne x t d at e of h e a r in g 18/ 01 /2 0 1 3. 18. 01 . 2 01 3 : P r e s en t Mr . V i k as G ar g, pr od u ce d t h e bil ls of t h e ex p e ns e s ( as n ot e d ) w h i c h we r e t ex t c he ck e d. F ur t her q u er y was r a is e d w it h r e s pe ct t o c e r t a i n bi l l s . Ne xt d a t e o f he a r in g 28. 01 . 2 01 3 . " 6. 2. 3 T he L d. A R , t he r e a f te r, re fe r re d t o as s e s s ment o rd e r, as pa s s ed or i g i n a l l y v id e o rd e r da t e d 1 1. 02 . 20 13 , w h e re in n o a dv e rs e vi e w ha d be e n t a ke n in r es pe c t o f i s s ue o f ' B us i n es s P romo t i o n Ex p en s es ’ a n d i t w a s fu rt he r a rg u e d t h a t d e t ai l ed e n qu i r i e s ha d be e n m a d e a b ou t t h e na t ur e o f ex pe n d i t u re bo o k ed un d er he a d B us i n e s s P rom o t io n E x p e ns es 29 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana a nd t ha t i t is c l ea r l y b or ne o u t th at no " F re eb i e s /G i ft s " h a d b e e n g i v e n t o M e d i c a l P ra ct i t i o ne r s /D oc t o rs an d t ha t t he s a m e ha d b ee n ve r i f i e d du r i n g t h e c ou rs e o f o ri gi na l a s s e s sm e nt p r oc ee di n gs. 6. 3. 0 A s s es s me n t Y e ar 2 01 1- 1 2: S i mi l a r l y, t he L d. A R b ro u g ht t o ou r a t t en t i o n t h a t t h e or i gi na l a s s es s men t fo r A Y 20 1 1 -1 2 w a s al s o fr a m e d u/ s 1 4 3(3 ) a n d t h at t h is i s s ue w a s ag ai n t h e s u bj ec t m at t er o f e xa m i n at i o n/ ve ri fi c a t i o n b y t h e A O c on c e r n e d a nd t ha t a co p y o f r e p l y d at e d 2 1. 1 1. 20 13 h a d b ee n pl a c ed a t pa g e 2 7 o f P a p er Bo ok - 1, w h er ei n, t he de t a i l s o f vari o us ex pe ns es de b i t ed i n t he pro f i t a nd l os s a cc o u n t a l o ng w i t h 'B u s in e s s P rom ot i o n ' e xp e ns e s h a d b ee n s ub m it t e d a n d c op ie s o f bi l ls w i th d at es a nd na r r a t i ons o f e a ch i t e m ha d be e n f i l e d a t pa ges 2 8 to 4 6 o f t h e P a pe r Bo o k -1 . 6. 3. 1 T he Ld . A R fu rt h e r r e f e r re d t o r e p l y da te d 20. 1 2 . 2 0 1 3 as fi l ed d ur in g t he c o urs e o f a s s es s me n t p ro c e ed i n g s an d w he r e i n i n r ep l y t o c e rt a i n q ue ri es a t pa ge 4 8 , pa rt y w i s e det a i l s of t h e 'B us i n es s P ro m ot i on ' e x pe ns e s h ad b ee n s u b m i t t ed a t th at ti me t o t he A s s es s i ng O ff ic er as pe r c o py p l a ce d a t p a g e s 49 t o 5 1 a l o n g w it h c o mp le t e a dd r es s e es o f t h e pe rs o ns t o w h o m t he fr e e b i es / g i fts w er e ha nd ed o u t . T he L d. A R fu r t h er br o u ght t o o ur at t en ti on t ha t s uc h 'P ro m o t i on a l S c he m e s' w e re me a n t on ly f or t he D i s t ri b ut or s / c o ns ig ne e s a l e a ge nt s/ s t oc ki s ts a n d t ha t t he ' s ch e m e do cu m e n ts w e re f urn i s he d t o t h e 30 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana A s s es s i ng O ff ic e r, al on g w i t h so m e p ho t o gr ap hs o f th e i te ms s o di s t r i b ut e d. T he L d . A R t h en r e f er r ed t o t h e or d er s h e e t e nt r i es at pa g es 69 t o 7 4 a nd he s pe c i fi c a l l y r e fe rr ed to t h e o r de r s h ee t en tr y d a t e d 16 . 0 1. 2 01 4 pl a c e d a t pa g e 72 o f t h e P a pe r B o o k a n d he i nv i t e d o ur a tt e n t i o n to t he fo ll ow i n g or d e r s he e t e n tr ie s da t ed 1 6 . 0 1. 2 01 4: “1 6. 0 1. 20 14 ” Sh . Vi k a s G ar g C. A at t en d ed & f il e d de ta i l s . H e i s a s ke d t o f i l e t he f ol l o w i n g. (1) D et ai l s a s p er Sr . no. 6, 12, 13 (r e as on s ) of o /s dt 03. 1 2. 2 02 0 1 3 7 & 2 1 (ad dr e ss ) of N ot i c e d t. 26 . 0 7. 201 3. (2) Ex p l a i n w hy e x c es s i v e i nt er e s t t o B . S. G i l l s h oul d n o t be di s al lo we d . (3) Ju s t i f y a b no rm a l i nc r e as e in s e l l i ng e x pe n s es li k e adv e r ti s e m e nt , bu s i ne s s p ro m ot i o n , r eb at e & d i s c o unt . Su b m i t co nf i r m at i o n. H ear i ng is f i x e d f o r d t. 29 . 01. 20 1 4 at 1 1 pm . ” 6. 3. 2 T he L d . A R th en re fe rr ed t o t he a s s e ss me nt or de r f or A Y 20 11- 1 2, p l a c e d a t p ap e r b o ok pa g es 7 5 t o 7 8 a nd s ub mi t t ed t h a t a f t e r du e e xa mi na ti o n b y t he A s s e s s i ng O ff i c e r o n t h e i s su e o f ' B us i n es s P ro m ot i on E x p en s e s ’ , no a dv e rs e vi e w ha d b ee n dra w n b y th e A s s es s i ng O ff ic er . 6. 4. 0 A ss e ss me nt Y e a r 20 1 2 -1 3: T he L d . C o u ns e l A R r e f e rr e d t o r e p ly d a t e d 09 . 03. 2 01 5 a s su b mi t t e d du r i n g or i g i n a l a ss e s s me nt pr oc e e di ng s w he re i n th e l ed g e r c o p y o f th e 'B us in es s P ro mo t i on E xp e ns e s’ a l o n g w i t h t h e v ou c hers h a d b e e n e nc lo se d, gi vi ng a l l s uc h de ta i ls a s p la c ed a t p a ges 80 t o 96 o f t h e P ap e r Bo o k -1 a l o n g w i t h co p i es o f t he bi l l s a t pa ge s 9 7 to 1 05 a nd t he o rd e r 31 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana s he e t e n t ri es a s pl a ce d a t pa ge s 1 06 t o 1 11 a n d i t w a s s u b mi t t e d t h a t a ft er e xa m i ni ng t h e s e de t a i l s a n d do c u m en ts , t h e A O di d no t t a ke a n y a dv e rs e v i ew vi s -à - vi s th e b u s in es s pr omo ti o n e x p e ns e s . 6. 5. 0 A s s es s me n t y e a r 2 0 1 4- 15 : T he L d. A R s u b mi t te d t h a t t he o ri gi na l a s s es s me nt fo r th i s ye a r w a s al s o t ak en u n d er s c ru t i n y a nd t h e is s u e o f t he ' B us i nes s P ro m o t i o n Ex p e ns e s ' a nd i t s nat ur e w as ex a m i n e d i n d ep th . Re fe re n c e w a s ma d e t o t he r ep ly , da t ed 0 1. 1 2. 20 1 6, p l ac ed i n P a p e r Bo o k -1, p a g e 1 1 6 w he r ei n c o py o f t h e l ed ge r a c c o un t al o ng w it h v ou c he rs o f B u si n e s s P ro mo t i o n ' ex pe ns es w er e t o t he A s s es s i ng O ffi c er . O ur a t t e nt i o n w a s als o d ra w n t o t he c er ti fi e d c o pi e s o f t he va r i o us ' I nc e n t i v es s c he me s' o f t h e co m p a n y fo r 'S t o c k i s ts a n d D i s t ri b ut or s ' w h i c h w e re pl a c e d a t p ag es 1 2 9 t o 14 9 o f P a per B oo k- 1 an d t he L d. A R s pe c i f i c a ll y r e f er re d to p a ge s 1 45 t o 14 9 o f th e P a pe r Bo o k -1, w he r e i n ce rt a in 'I n c e nt iv e S c he me s ' fo r t h e A ut h or i z e d S to ck i s t s ha v e b e e n me n t i one d. Th e L d . AR a l s o d re w o ur a tt e n t i o n to t he ' o r de r s h e e t e nt r i es ' f or t he s a i d ye ar , p l ac ed a t pa ges 15 0 t o 15 6 o f t he P a pe r B o o k- 1 . H e s pe ci fi c al l y d rew o ur at t e n ti on t o pa g e 1 52 w h e r ei n t he c on c e rne d A s se ss i ng O ffi c er h ad c a l l e d f or de t a i ls o f t h e ' B us i n e s s P ro m ot i o n ' e xp e ns e s a nd t he or de r s he e t e n t ri e s w hi c h de mo ns t ra t e d t hat de t ai l e d e xa mi n a t i on h ad b e e n c a rri ed o ut b y th e A s s es s i ng O ffi c e r o n t h e i s s ue . T he L d. A R a ls o re fe r r e d t o t h e o ri gi n a l A s s es s me n t o r de r f o r A Y 2 0 14- 15 a n d s ub mi tt e d t ha t n o a dv e rs e v i e w 32 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana ha d b e e n ta k e n b y t h e A s s e s s i ng O ffi c e r vi s -à - v i s Bus i ne ss P r o mo t i o n E x pe ns e s . 6. 6 T he L d. A R, on t he s tr en g t h o f t h e ori gi na l a ss es s me n ts fr a m e d , a r g u ed t h a t s i nc e t he o r i g i na l a ss e s s me n t or d er s ha ve be e n pa s s ed a ft e r d et a i l e d s cr u t i n y a nd e s pec i al l y th e iss u e o f 'B us i n es s P ro m ot i on ' e x pe ns e s ha d be en e x a mi ne d/ ve ri fi e d a nd i s pa r t o f t h e re c or d o f t he A s s es s i ng O ffi c e r ’s fi l e in th e a s s e ss me nt s fra me d u /s 15 3A /1 43( 3 ), w hi c h a re now t he s u bj e c t m a t t er o f r ev i s i o na r y pr o c e e d i n gs u/ s 2 6 3 b y t h e L d . P CI T, (Ce nt ra l) , L u dh ia na . I t w a s f ur t he r s ub m i tt e d b y t he L d . A R t ha t for A Y 20 15 - 1 6 i n t h e a s s e s s me n t or de r fr a m e d u/ s 1 5 3A , t he r e i s a r e fe r e n c e t o th is ve r y is s ue o f t h e n at ur e o f 'B us in es s P r o mo t i o n e x p en se s de bi t e d to pr o fi t a n d l os s a c c o u nt w hi ch re a ds as un de r : - " 5. T he as s ess e e d e a ls i n m ar k e t i n g a n d t r ad in g of G e ner i c ph ar m ac eu t i ca l, H ea l t h c ar e an d c os m et i c p r o duc t s a ll ov e r In d i a an d a p po i nt e d n u m b er s o f C & F a ge nt f or di s t r ib ut io n a nd s a l e o f g oo ds . Si n c e t he c om pa n y de al s i n t he g e ne r i c go o ds w h ic h do e s n o t r e q ui r e a n y pr e s cri pt i o n f r om an y D oc t or / m e di c a l pr a c t i t i o n e r and t he c om pany ha d n o t p a i d an y t y pe of gi f t o r ca s h or o t h er w i s e t o a ny s uc h pr o f e s s i on al . 6. Fur t he r cl ar i f i e d t h at t he c om p an y ha d p o l i c y o f Bu s in es s P r om ot io n t o gi v e s om e f re e g i f t s t o t h e de a l e rs as q ua nt i ty d is c o u n t w hi c h is pur e l y f or t he pu r p ose of s al es i n c r e m e n t . T he t o t a l su ch m a t e r i al pur c has e d a n d de l i v er e d ha d du l y b e e n a c c ou nt e d f o r in t he b oo ks o f ac c o u nt s . T h e pr e s cr i be d r a t e l i s t o f t he as s es s e e i s at t ac h e d h er e wi t h a s a pr oof of s al es pr o m o ti o n . " 33 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 6. 7 O ur at t e n ti on w as f urt he r d r a w n b y t h e L d. A R t o th e or de r s he e t e n t r i e s a t pa g es 1 68 to p a g e s 1 80 o f th e ' P aper B oo k ', w h e re i n a t pa g e 17 1 o f t h e or de r s he et e n t r i es , d at e d 01. 1 1 . 2019 , t h e re i s a q ue ry ra i s e d w i t h r e g a rd t o t he bus i ne s s p r o m o t io n e x p e nses , w hi c h is b e i n g re p r o du c e d as un de r: - " Ki n dl y gi v e de t a il s o f t he s er v i c e s r ec e iv e d f r om t h e c om m is s i on a ge nt s t og e t he r w i t h t he a gr e em e n t s e n t er w i t h t he m , t h e b as i s o f th e c om m i s si on p ai d a nd t h e pe r ce n t a g e of th e com m i s s io n p ai d v iz . a v i z . sal e s . Al s o s ubmi t th e c er t i fi e d c o p i es of t he l e d ge r ac c o u n ts o f a l l t h e c om m i s s i on ag e n ts ab ov e Rs . 1 0 ) l ac . ( i) Ki n d ly g i v e r ea s on f or in cr e as e i n t he f o l l o wi n g ot h er ex p e ns e s i n F . Y . 20 14- 15 w. r . t . F . Y . 2 013- 14 : a ) Ad v e r t is e m e n t e x p e ns e s i ncr e as e d f r om 4 . 11 % o f t h e s al es t o 7. 78 % of t he s al es i n F . Y . 20 14- 1 5. b ) Bu s in es s Pr o m o ti o n e x pe ns e - in cr e as i ng f r om 3. 06 % of th e s al e s t o 3 . 4 2 % of t h e s al e s in F . Y . 2 014- 15. c ) Sc h e m e , Re b at e & D is c ou n t i n c r ea s e d f r om 2. 55 % o f t he s a l e s to 6 . 58 % of t h e s a le s in F. Y . 20 14 - 15. d ) T r av el l in g an d o t he r ex pe ns e s em pl o y e es i nc r eas e d f r om 2 . 07 % of t he s a le s to 2. 4 5 %) o f t h e s al es i n F. Y . 20 1 4- 15 . Ju s ti f y y o ur r e pl y wi t h do c um e n t a r y e vi d e n c e. (i i ) K in dl y s ub m i t ce r ti f i e d c o py o f th e F or m 3 CD. (i v ) Ki nd l y g i v e r e a s on fo r m i s m at ch o f am ou nt p ai d t o r e l at ed p er s on u /s 40 A( 2 )( b) i n Au d i t r e por t an d I TR Ki ndl y s u bm i t t h e c om p l e te r e pl y o f th e a b ov e a ls o o n 05 . 1 1. 2 01 9 . A s pe r t he r eq u es t o f t he co u ns e ls , t he c as e is ad j ou r n t o 05 1 1. 2 0 19. " 6. 8 T he L d. A R fur th er r e fe r r e d t o t h e c h a r t p l a c ed a t P a pe r B oo k -3, a t pa g e 1 g i v in g a s na p- s h ot o f t h e ' Bus i ne s s P ro m ot i on ' e x pe n s es bo ok e d i n di ffe re nt as s e s s me nt ye a rs a n d b r o ug h t t o t h e n ot i c e o f t he B en ch t h a t s e ve n as s e s s me n t s ha d b ee n fra m e d u/ s 1 43( 3 ) a s p er ch a r t he r e u nd e r: - 34 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana D e t a i l s o f b u s i n e s s p ro m o t i o n e x p e n s e s f o r A Y 2 0 0 8 -0 9 to 2 0 1 8 - 1 9 a n d c o m p l e ti o n o f a s s e s s me n t p r o c e e d i n g s o ri gi n a ll y a n d in t h e o r d e r u / s 1 5 3 A / 1 4 3 ( 3 ) Assessment Year Business Promotion Expenses Relevant Page of Paper book Original assessment u/s Date of Original assessment u/s 143(3) Date of assessment u/s 153A 2008-09 1741223 7 143(l)(a) N.A. 30.12.2019 2009-10 11011055 17 143(3) 07.12.2011 30.12.2019 2010-11 20423090 27 143(3) 11.02.2013 30.12.2019 2011-12 40255106 37 143(3) 27.02.2014 30.12.2019 2012-13 31322845 49 143(3) 19.03.2015 30.12.2019 2013-14 36537940 61 143(l)(a) N.A. 30.12.2019 2014-15 55875725 74 143(3) 16.10.2017 30.12.2019 2015-16 105445890 89 143(3) 25.09.2017 30.12.2019 2016-17 94797688 104 143(l)(a) N.A. 30.12.2019 2017-18 12725 7175 121 143(1) (a) N.A. 30.12.2019 2018-19 129255390 138 143(3) 30.12.2019 N.A. 6. 9 Th e L d. A R fu r t h e r s ub m i t t e d t h a t w i t h t he a b o v e b ac kg r o u nd a n d ve r i fi c a t i on o f t he 'B u s in es s P r o mo t i o n e x p en s es i n d i f fe re n t y e a r s , t he a s s es s men t s fra m e d u / s 1 53A / 14 3 ( 3) w e re t a k en u p s im u l ta ne ous l y by t he i s s ua nc e o f n o t ic es u/ s 153 A fi rs t l y for s i x a ss es s m en t ye a r s a nd , l at e r o n , fo r th e p re c e d i n g f ou r as s e s s me nt ye ar s and a ll t he s e ar ch a s s es s men t s w e re t ak e n up t o g et he r a nd t hat t h e da te o f is s ua nc e o f no t i c es u/ s 153 A / 1 4 2( 1) i n si x a s s e ssm e nt y e a rs w a s t he s am e a n d fo r t he pr e c e d i n g fo u r a s s e ss me nt ye a r s a ls o i s t he s a me. I t w as f urt he r s ub m i tt e d t h at on l y o ne A s s e s s i ng O ff ic er w as s e i z ed o f t h e s e ar c h a s s es s men t s fo r a l l t h e y e ar s un d er c o ns i de r a t i on an d h e ha d p roc e e d e d t o fr a me t h e as s e s s me nt s s i m ul t a ne ous l y o n on e s i n gle da y i . e. on 30 . 1 2. 2 01 9 a n d ha d a l s o ve ri fi e d t h i s 'Bu s i n es s P romo t i on e x p e ns e s ' i n de t ai l a n d t hi s f ac t c o up le d w it h t he e a rl i e r d e t a ile d 35 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana e nq ui ri e s /i nv es t i g at i on / e xa mi na ti ons ma de b y t he diff e r en t A s se s s i ng O ff ic er s i n or i g i n a l as s e s s me nt pro ce e di n gs l e ft no do u bt t h a t t h e A O ha d a pp li e d h is mi nd t o t he i s s ue o f bu s i n es s pr o m ot i o n e xp ens e s i n de t ai l . O ur at t en ti on w as al s o dr a w n t o t he A n no t a te d Re p or t ' o f th e A s s es s i ng O ffi c er s ub m it t ed t o t he P r. Co m mi s s i o ne r o f I n co me T ax (C e nt ra l ) an d fu r th er o u r a tt e n ti on w a s al s o dr aw n t o th e fo l l ow i ng c har t de p i c t i ng t he se qu en c e o f s e ar ch a s s e ss me nt s u /s 15 3A / 1 43( 3 ) : - CHART SHOWING SEQUENCE OF EVENTS DURING SEARCH ASSESSMENTS Sr. ASSESSMENT SECTION DATE OF DATE OF DATE OF DATE OF NO. YEAR UNDER WHICH ISSUE OF FILING ISSUE OF PASSING PROCEEDINGS NOTICE U/S ITR U/S NOTICE OF ORDER INITIATED 153A/143(2) 153A/139(1) U/S 142(1) 1 2008-09 153A 19.09.2019 02.12.2019 07.10.2019 30.12.2019 2 2009-10 153A 19.09.2019 03.12.2019 07.10.2019 30.12.2019 3 2010-11 153A 19.09.2019 03.12.2019 07.10.2019 30.12.2019 4 2011-12 153A 19.09.2019 03.12.2019 07.10.2019 30.12.2019 5 2012-13 153A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 6 2013-14 153A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 7 2014-15 153A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 8 2015-16 153A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 9 2016-17 153A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 10 2017-18 153 A 25.02.2019 09.09.2019 23.09.2019 30.12.2019 11 2018-19 143(3) 25.02.2019 30.11.2018 23.09.2019 30.12.2019 6. 10 R e fe r ri n g t o th e a bo v e c h a r t , t he L d. A R su b mit t e d th at i t i s p r ov e d be yo nd a n y do ub t t ha t a l l t h e s e a r ch a s s es s me nt s p ro c ee de d on a s i m il a r pa t t e rn a nd on s a me d a te s , w hi c h a r e pr ove d f r o m t he o r de r s he e t e n t r ie s o f s e a rc h a s s es s me n ts p l ac e d a t pa g e s 1 t o 7 9 o f P ap e r Bo o k -V . It w as fu r t he r a r g ue d b y t he Ld A R t h a t s i nc e t hi s i s s ue h a d be e n e xa mi ne d th r e a db ar e i n t he o r i g i n al as s e s s me nt p r o c ee di ngs a n d i n 36 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana t he pr oc ee di ngs u/ s 1 5 3A a nd c o u pl e d w i t h t he fac t t ha t n o i nc ri mi na ti ng ma te ri a l o r ot h e rw i s e a ny ot he r e vi d en ce ha d b e e n fo u nd du r i n g t he c ou rs e o f s e ar ch t ha t an y " F r ee bi e s /G i fts " w a s gi v e n t o t h e D oc to rs / M e d i c al P r a ct i t io n er s , t h er e f ore , t he f i n di ngs o f t h e L d . P C IT (C e nt ra l ) w i t h re g a rd to s e t ti ng as i de o f t h e as s es s me nt s fo r ma ki ng e nq ui ri e s , r el a ti ng t o t h e n at ur e o f ' B us i ne s s P r o mo ti on ' ex p e n s es w as m is c o nc e i ve d. It w a s f ur t h e r a r g ue d t ha t i t i s s e t tl e d l a w t ha t t he s e ar c h a s s es s men t s ha ve t o be fr a m ed on t h e b as i s o f i n c r im i n at i n g ma t e r i a l fo u nd du r i n g t h e c ou rs e o f s e a r c h a n d s i nc e no i nc ri mi na t in g ma te ri a l ha d b e e n fo un d fo r a ny o f t h e ye ar s on t hi s i ss u e of ' Bus i ne s s P r o mo ti o n E x pe ns e s ' , t h e e nt ir e ba s is fo r s e t t i ng as i d e t he al r e a dy c o mp l e t e d a s s es s men t s w as a ga i ns t t he fa ct s a nd c ir cu ms t a n ce s of t he c a s e . Re l ia nc e w a s p l a ce d o n t he fol l ow i ng j u d g me nt s by th e L d. C ou ns e l as un der :- i). CIT (Central)-III vs Kabul Chawla [2015] 61 taxmann.com 412 ii). Principal CIT-9 vs Ram Avtar Verma [2017] 88 taxmann com 666 iii). PCIT-1 v. Devangi [2-017] 88 taxmann.com 610 iv). PCIT, Central IT New Delhi v Meeta Gutgutia [2018] 96 taxmann.com 468 v). PCIT-V vs Vikas Gutgutia [2017] 88 taxmann.com 605 vi). Judgement of Chandigarh Bench of the ITAT in the case of Shri Tarun Jain & Others in ITA No. 625 & 626/Chd2019 vide order, dated 27.01.2020 6. 11 Th e L d. A R fu rt he r s ub mi tt e d d e t a i l e d a rg u me n t s on th e ba s i s of va r i o us c o nt e n ti o n s o f t h e Ld . P C IT fr o m P a ra 5. 4. 1 t o P a ra 5. 1 3, w hi c h a re su mm a r i z e d as un der :- 37 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana a ). S i nc e no in cr i m in a t i ng ma te ri a l h a d b e e n f ou n d w i t h r es p e c t t o " F r e e b i e s / G i ft s to D oc t o rs / M ed i c a l P r a ct i t i o ners , no a dv e rs e v i e w c a n b e t a k en i n re s p e c t o f 'B us i n es s Pro mo t i on ' e xp e ns e s a s c l ai m ed i n t h e r e t u rn o f i n c o me as pe r th e bi n d i ng j u d g me nt i n t h e c a s e o f 'K a b u l C ha w l a 's (s upr a ) ca s e a nd va ri ou s o t h e r j ud g me n t s o f d i ff e r e n t H on ’b l e H igh Co u rt s a n d o f t he Co - or d in at e Be nc h es , p ar t i c ul a r l y t h e or d e r o f t he C ha nd i ga r h Be nc h a s c i te d 'S u pr a " . b). Th e o ri gi na l a s s es s men ts h a v i n g me rg e d w it h the as s e s s me n t s a s fr a me d u / s 15 3A / 1 43( 3 ), t h e A s s es si ng O ffi c er w a s w el l aw a re o f t h e de t a i l e d i nv e s ti ga t i on s /e xa mi na t io ns /e nq ui r i es ma d e by d i f fer en t A s ses s i ng O f fi ce rs i n t h e or i g i n a l a s s ess me n t p roc ee di ngs an d i n th e a s s es s me nt s fa r m e d u /s 1 53 A . c ). S in ce , t he r e i s n o l i n k o r c on ne c t i o n o f t h e as s es s e e co mpa ny w it h t h e D o ct o r s /M e d i c a l P r a ct i t i o n er s , t h er e i s no que s t io n o f g iv in g " F r ee b i e s /G i ft s " to D o c t o r s/ M e d ic a l P ra ct i t i o n er s a n d r at h e r, t h er e i s ev id e nc e o n r e c or d i n t he s ha pe o f v a ri ou s p ro m ot i o na l/ i n c en t i v e s ch e m es m e a nt o nl y for t he S t o ck ie t s / D i s tr ib ut ors w h ic h h as l e d t o s u bs t a n ti a l i nc r e a s e i n t he t u rno ve r o f t he as s e s s e e/ pr o fi t s of t he co mpa ny i n s ub s eq u en t ye a rs . 38 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana d). The g ui de l in es o f th e ' M e d i c al Co u n ci l o f I n dia ' ar e no t app li c a b l e t o t he S t ock is t s / D i s t r i b ut or s , s i nc e t h ey a re no t M e di c a l P r o fe s s io n al s an d P ro mot i o n a l I n ce nt iv es / S ch e m es ar e o f fe re d fo r ' B us i ne s s e xp ed i e n c y ' o n ly . e ). Re l i a nc e w as pl ac e d by t h e Ld . A R on v a r i o us jud g me nt s , i nc l u d i n g th a t o f th e H o n’ bl e A p ex C ou rt a n d o f t he J uri s di c t i o n al H i gh Co ur t in t h e c as e o f 'L e a de r V al v e s L td . re p or te d i n 29 5 I T R 2 7 3 (P &H ) , I T R 41 0 o f D a l m ia D a dr i Ce me nt L td . t h a t i f on e is s u e h as be e n e xa m i ne d i n t h e c a s e o f s a m e a s s es s e e, th en no a d v e rs e vi e w ca n be t a ke n, i f t ha t i s s ue ha s be e n a c c e pt e d, un ti l or u n l e s s , t he fac t s a re no t s i mi l a r. I t w a s a r g ue d t h a t i s s ue o f 'B u s in es s P ro mot i on ' e xp e ns e s ha d be e n e x a mi n e d i n d i f fe r en t ye a rs a n d he n c e t he r e b ei ng n o ch an g e o f fa ct s , ev en o n me r i t s , o n th e pr i nc i p l e o f co ns i s te nc y, t h e s a i d " Bus i n e s s P r o mo ti on " e xp e ns e s w e re al l o w ab le . 6. 12 T he L d. A R a rg ue d t h a t , th u s , i t w a s ap p a re nt t h a t i s s ue o f gi ft s an d fre e bi es ha v e b ee n e xa mi ne d t h or ou gh l y by t h e va ri ous A O s du r i n g t he c o u rs e o f o ri gi n al a s s es s m en t a n d, t he r efor e, t he L d . P C IT ha d w ro ng ly c o nc l u de d t h at t h is i s s ue ha d n ot be en e x a m i ne d b y t h e A O m a ki n g t he as s e s sme nt o rd e rs e rro n eo us as b e i n g pr ej ud i c i a l t o t h e i nt er es t o f t h e Re v e n ue . 39 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 6. 13 It w as fu r t h er s u b mi t t e d t h at t h e r e w as no l in k o r c on ne c ti on o f t he a s s es s e e c o mp an y w i t h D oc t o rs an d M e d i c a l P ra c t i t io ne rs a nd , t he re fo re , t he re w as n o q ue s t i o n g i v i ng a ny fr e e bi es o r g i ft s t o a ny M ed ic a l P r a ct i t i o n er s / D oc t ors a n d as s uc h t h e p rov is i on s o f s e ct i o n 37 ( 1) w o ul d not be a tt ra c te d i n a s s es s e e ’s c a s e a n d, t h er e fo re , for t h is re a s o n t h e gu id el i n es is s u ed by t he M e di ca l Co un ci l o f I nd i a w e re a l s o no t a pp l i ca bl e i n t he c a s e o f t h e a s se s s e e. It w as a ls o s u b mi t te d t h a t M ed ic a l P ra c ti t i o n er s o r D oc t o rs , us ua l l y , a s a m a tt er o f ge ne ra l pr a c t ic e , d o n ot pr e s c ri be an y g e ne ri c me di c i n e s , whe re a s t he a s s es s e e , un di sp u t e d l y, w a s m a n u fa c t u r i n g ge n er i c me d i c in e s an d , th er e fo re , f or t hi s r e as o n al s o i t c ou ld n o t b e s a i d t h at t h e L d. P CIT h a d r i g h t l y s e t a s id e t he as s e s s me n t o rd e r. 6. 14 T h us , i n nut s h e l l, t he ma i n t h rus t o f ar g u m ent w a s t ha t t he a s s es s e e ha d s ub mi t t e d pl e t h o ra o f do c u m en ts an d oth e r e vi de nc es be fo r e th e A O a s w el l as th e L d. P CI T t o p r ov e t h a t th e i mp u gn e d bu s in e s s pr o m o ti o n e x pe ns es w e t r e no t i nc urr ed fo r pr o vi di ng a ny fr e e b i e s o r g i f ts t o d oc to rs o r me di ca l p ra c ti t i o n ers a nd t h a t fur t he r t he re w as due a pp li c at i o n o f m i n d an d de t a i l ed i nq ui r i e s by t h e A O a nd a s s u ch i n vi e w o f s uch de t a il e d in q ui r e s an d su ch d u e a p pl i ca t i o n o f m i nd , t he r ev is i o na ry p r oc ee di ngs w er e ba d i n l a w and w er e l i a bl e t o b e qu as h e d. T he Ld . A R pl ac e d r e l ia nc e o n nu me ro us jud ic i al pr ec e de n ts fo r th e p r o pos i t i o n th a t w h e r e t h er e h a s bee n d u e ap pl i c a t i on o f m i n d b y 40 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana t he A O , th e L d. P CI T c a n no t l e g a l l y ha v e re c o u rs e of pr ov is i o n s o f s e ct i on 2 6 3 o f t he A c t . 6. 15 Wi t h re fe r e n ce to A Y 2 017 -1 8, t h e L d. A R fu rthe r su b m i t t ed t ha t t h e L d. P CI T ha s ra is e d a n ot he r i s s ue i n t hi s ye ar t h at be i n g no n re fe r e nc e t o t he T ra ns fe r P ri c in g O ffi c e w i t h r eg a rd to s p ec i f i e d do me s ti c t r a ns a c ti o ns . It w as fa i r l y a c c ep te d by the L d . A R t ha t t h e s a i d re fe r e nc e w a s m a n d a to ri ly r eq ui re d to b e m ad e . It wa s s ubm i t t e d th at t h e i s s ue o f m a k i n g t h e r e fe re n c e to t he T ra ns fe r P r i cing O ff i c e r ma y b e s e nt ba ck t o t he A O for t he l i m it e d p u rp o se o f m ak in g t he re fe r e n c e t o t he T ra ns fer P r i c i n g O ffi c er . 7. 0 In r es p o ns e t o t he ar g u me n t s by t h e L d. A R, th e L d. CI T D R s ub m i tt e d t ha t t h e i s s ue n a t ure o f t he bus i ne s s pr omot i o n e xp en s es h a d no t be e n ve ri fi e d b y t he A O i n a l l t he a s s e ss me nt s fr a m e d u/ s 14 3( 3 ) o f t he A c t an d i t w a s a ls o s ub mi tt e d t ha t t he a ct i o n u/ s 2 6 3 o f t h e A c t ha d be e n ta ke n i n re s p e c t o f a ss e s s me nt s u / s 1 5 3A a n d, th er e f o re , e v e n i f t h e i s s ue ha d b e e n e x a mi ne d i n t he ori gi n a l a s s es s me n t p roc ee di ng s u /s 14 3(3 ) o f t h e A c t , t he s a me w o u l d n ot be h a v i n g a ny r el e va n c e h e re . I t w as f ur t h e r a r gu e d by t h e Ld. CI T D R th a t ev en s o me o f t h e a s s es s me n ts vi z . fo r A Y s 2 008- 09, 20 1 3 -1 4 a n d 2 0 1 7- 1 8 h a d be e n o r i gi n a l l y fra m e d u/ s 1 43 ( 1 ) ( a ) o f t h e A ct an d fur th e r fo r t w o a s s e ssm e n t y ea rs vi z. 2 0 0 9- 10 an d 2 0 1 5- 16, a s s ess me n ts h a d b e en fr a m e d u/ s 1 43(3) b ut a s pe r re c or ds , no i nq u i r y or i nve s t ig a t io n ha d be e n ma d e by t h e A O c on ce r n e d 41 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana i n re s p e c t o f Bu s i n es s P rom ot i o n Ex pe ns es a nd a s s uch th e L d. P C IT h a d ri g h t l y c a n c e l l ed t he a s s es s m en ts . T he L d . CI T D R po i nt e d o u t t h a t e ve n i f s o m e e x a mi na ti on o r ve r i fi c at i on o f t h e i s sue ha d be e n c a r ri ed ou t b y t he A O in o ne o r fe w o f t he as s e s s me n t y ea rs, th e s a me c o u l d n o t be a p pl ie d f or a l l t he a s se s s me nt y e a r s a s ea ch y e ar is a s ep a r a t e ye a r a nd a s s es s men t h as t o be c o mp l e t ed o n t h e fa ct s an d re c o rds a va i l a bl e fo r t ha t pa r t i cu l a r a ss e ss me nt y e a r . 7. 1 It w a s fu rt he r a r g u ed b y t he Ld . C I T D R th a t i t i s no t n e c es s a r y t ha t t her e s ho u ld be a n y i nc ri mi na t i n g m at e r i al for t h e p u rp o s e o f m a ki n g a n y a d d i t i o n i n s ea r c h as s e s s me nt s be c aus e se c t i on 15 3 A o f th e A ct i s a c o m pl e t e c od e i n i ts e l f an d u n de r t h e pr o vi s io ns o f th e s ai d s e ct i on, as s e s s me nt s h ave to be co mp l e te d b a se d on t h e c o m pl e t e re c o rd be fo r e t he A O i nc l ud i n g i nc r i mi n a t i n g m at er i a l fo und d ur i n g t he c o ur s e o f s e a r c h b u t t h e a ddi t i o ns o r d i s al l o w anc e s c a n no t b e r e s t ri ct e d o n l y t o i nc ri mi na ti ng m a t e r ia l f ou nd du ri ng t h e c o u rs e o f s e a r c h . T h e L d. C I T D R e mp h as i z e d t h at i n t e r ms o f pr o vi s i ons o f s e c t i on 15 3A bot h di s c l o se d a s w e l l a s un d is c l os e d i n c o m e h as t o b e br o u ght t o t a x a n d, t he re fo re , to s a y t h a t a dd i t i o ns ca n be ba s e d on l y in cr i m i n at i n g ma t e ri a l fo u nd du r in g t he c ou rs e o f s e a r ch i s n ot t he c or r ect i n t e r pr e t a t i on o f l aw . 7. 2 D ra w in g o ur a t te nt i on t o th e c on t e n ts o f t h e s ho w c a u s e no ti c e, t h e L d. C I T D R s u b mi t te d t hat t h e Ld . P C I T ha d d ul y t a ke n n ot e o f t h e fa c t 42 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana t ha t t he A O , duri ng t he co urs e o f as s e s s me n t p ro c e ed in gs , h ad no t e xa mi ne d t h e i s s ue o f B us i n e ss P r o mo ti on E xp en se s an d t h e r e w as n o t e ve n a n y ki nd o f a n a ly s is c ar r i e d o ut b y t h e A O to e xa mi n e t h e n a t ur e o f Bu si ne s s P r o mo ti o n Ex pe n s es . It w as s ub m it t e d by t he L d. CI T D R t ha t a pe ru s al o f t h e a s s e ss me nt r ec or d s w ou l d s how th at t h e A O ha s no t c ar ri ed ou t a n y ki n d o f i n q ui r y i nt o t h e na tu re o f e x pe nd i t ur e p e r t ai ni ng t o bu s in es s pr o m o ti o n , w h er ea s , t h e A O w a s re qui re d t o p ro pe r l y e va lu a t e t h e va r i o u s ev id e n c e s fi l e d b y t he as s e s s ee . Th e L d. CI T D R e mph as i z e d t ha t t h e A O ha d f a i l ed t o v er i f y w he t h e r t h e f re eb i e s / g i f ts di s t r i b ut e d b y t h e a s s e ss e e c o mp an y w e re g i v e n t o Me di c al P r a ct i t i o ne rs or t o o t h e r pa rt i es l ik e di s t ri bu t or s a nd s t oc k i s ts a s i s be in g cl a i m e d b y t he a s s es s e e . It w as s ub mi tt e d t ha t , t he re for e, t his l a c k o f i nq u i r y on t he pa r t o f t he A O ha d r e nd er ed th e as s e s s me nt o rd er s err on eo us a s f a r as be i ng p r e j u di c ia l t o t he i nt er es t o f t h e R e v en ue a nd t he re fo r e, t h e Ld . P CIT ha d r i g ht ly s e t a s i de a l l t he a s s es s m en t o r d ers i n t he p r e s ent s et o f a pp e a l s . 8. 0 In t he r e j o i nd er , t he L d. A R re i t e r at e d t h a t deta i le d q u e ri e s h ad be e n r ai s e d w i t h r e s pe c t t o t he Bus i ne ss P ro mo t i on Ex p e n se s by t h e A O w hi ch w a s ve r y mu c h e v i d e n t fr o m t he v ar i o us r e p l i es a n d co p i es o f t he or d e r s he e t en t ri e s w hi ch h a v e be e n fi l ed b y th e a ss e ss e e a n d s i nc e t h e a s s es s men t s w er e b e i n g t ak e n up s i mu l t a n e o us l y by th e A O , th e a s s es s e e ha d a l s o s ub m i tt e d re pl i es o n i de nt i c a l l i ne s an d, t h er e f o re , t o s a y t h a t t he A O h a d mi s s e d o u t o n r a i s in g q ue r i es in s o m e o f t he a s s es s me n t 43 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana ye a rs i s n o t c or re c t . It w as s ub m i t t e d t ha t i t w as on l y o n t h e ba s i s o f t he r e p l i es f u rn is h e d b y th e a s s e s se e i n r es p o ns e to t he q u er ie s t h a t t h e A O ha d re a c h e d t h e c on cl us i on t ha t n o fr ee bi e s or gi ft s w er e g i v en t o a ny M e di c a l P ra ct i ti o n e r s o r do ct or s th er eb y e n a bli n g h i m t o for m a n op i n i on t ha t E x pl a n a ti on t o S e c t i o n 3 7 ( 1) o f t he A ct w a s not a t t r ac t e d i n t he a s s e s se e ’s c as e and th a t th e a mou nt o f e x p e n di tu r e c l a i m e d u n de r t h e he a d ‘B u s in e s s P ro m o t i o n E x pe ns e s ’ w as a n a l lo w a bl e e xp e n d i t ur e. I t w as s ubm it t e d t h a t t h e A O ha d r e a ch e d th i s c on c l u s ion a ft e r d u e a pp l i ca ti on o f mi n d a l th ou gh he mi g h t n ot ha ve e l a bo r a t ed t h e s a m e i n t he as s e s s me n t o r d er s b ut i t w o u l d n o t m ea n t h a t the A O ha d fa i l e d t o c on du ct t he r e qu is i t e e nq u i r es on t h e i s s ue. 9. 0 We h a ve g o ne t hr o ug h t he r i v a l s ub mi s s io ns a nd h a v e a l s o pe r u s e d t he r ec or d s a s w e l l a s t he i mp u gn e d o r d er s . I t ap pea r s t ha t t he L d. P C IT (C e nt ra l ), Lu d h i a na in i t i a t e d t he p ro c e ed i n gs u /s 263 on t he b as i s o f t he j ud g m e n t o f t he H o n’ b l e A p ex Co ur t ’ in t he c as e o f ‘A pe x L a b o ra t o ri es P vt . L t d . vs . D CI T i n C i v i l A p pe a l N o. 15 54 o f 20 2 2 v i d e j u dg m e n t da t ed 22 . 0 2. 20 2 2 a nd t he c o n te nt i o n o f t he L d. A R ha s b ee n t hat th e a s s es s e e ha s no l i nk o r c o n ne ct i o n w it h t he M e d i c a l P ra c t i t io ner s /D o c t o rs , s i nc e i t is n ot gi v i n g a ny ‘F r e e b i es / G i ft s ’ t o t h e D oc to rs / M e d i c al P r a ct i t i o ne rs . 9. 1 We h a ve a l s o c ar e f ul l y co ns i d er e d t h e s ub m is s i on s of th e L d. A R t ha t i n t h e o ri gi na l a ss e s s me nt p roc e e di ngs for A Y 20 1 0- 1 1, 2 01 1 - 12 , 44 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 20 12- 1 3, 2 01 4- 15 t hat t h e i s s ue o f ‘ B us i ne ss P r o mo ti o n ” e xp e ns e s w as t he s u bj e c t ma t te r o f de ta i le d e nq u i r ie s / ex a m in at i ons / v e ri fi ca t io ns by t he d i f fe r e n t A s s e s sin g O f fi c e rs d u r i n g t h e c o u rs e o f o ri gi na l a s s es s m en t pr o c e e d i n gs a n d t h e s a m e i s e vi d en ce d b y va r i ous rep l i e s / doc u m en t a ry e vi de n c e s an d t e x t /b r o c h ur e s o f t h e va r i o us ‘P r o mo ti ona l / In ce nt i ve S c he m e s’ , a s l aun c h ed f ro m t i me to t i me for t he b e ne fi t o f t he S t o c k i s t s / D i st r ib u t o rs , t o w h o m v a r i ou s i te ms w e re gi v e n a s ‘F r e e bi e s /G i ft s ’ a nd fo r w h i c h , co p i es o f t he s a m pl e b i ll s , e tc a ls o ha ve b e en fu rn is h ed . T h us , i n vi e w o f t he s e do c u me nt a ry e vi de nc es a n d repl i e s , th e c on t e n t i o n o f t h e a s s e ss e e in t hi s re g a r d a pp e a rs to b e c o rr ec t . 9. 2 We a l s o n o te t h a t i t is al s o b or ne o ut fr o m t h e r ec or ds t h a t s ev en a s s es s men t s o ri gi n a ll y h av e be en fr a m e d u/ s 1 4 3 (3) o f t he A ct a nd i t is a ls o a fa c t t h a t th e qu es t i on a s to w h et he r or n ot t h e pr o mo ti on a l /i nc e nt i v e s c he m e s o f th e c o mp a ny w e r e me an t on ly f or S t oc k is t s / D is t r i b ut or s an d t he n at ur e a nd d et a i l s of ex p e n s es un de r t h e he a d ‘B u si n e s s P ro m o t i o n’ e xp e ns e s h a d el a b or a t e ly b ee n e xp l a in ed i n t he o r i g i n al a s s e s sm e nt pr oc e e di n gs . It i s a l s o s e en t ha t i n A Y 2 01 0 - 11 , t he re i s a s p e c i fi c r ep l y d at ed 0 8. 01. 2 0 13 re la t i n g to t h e q ue r y a b out t h e na t ur e o f ‘ B us i n e s s P ro m ot io n’ e x pe n s e s de b i te d t o t he pro fi t a nd l os s a cc ou n t a nd t h e s am e i s be i n g re pr od u c ed a s un de r : - “ 9. C opi es o f b il l s abov e Rs . 50 00 0 / - e x p en de d un d er h ea d B u s in es s P rom ot i o n du r i n g t h e as s es s m e nt ye ar 2 0 10- 20 11 a r e e nc l o s ed. 45 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana T he b u s in es s p r om ot i o n e x pe ns e s i nc ur r ed by t h e c om p an y dur i ng t h e as s es s m e nt y ea r 201 0- 20 11 ar e o n a cc ou n t o f p ro m o ti on al i t e m s p ur ch as e d b y th e c om p an y a n d d is p a t c h e d t o t h e d is t r i b ut e rs / s t o c k i e s t s on sc h e m es g iv e n b y t he c om p a ny f r om t i m e t o t im e t o e nh a n ce th e s a le s . T he c om pa ny u s u al l y g i v e s th e s ch e m es to i t s d is t r i b ut or s / s t oc k i es t s / r e t ai l e rs to pr o v i de t h e p r om ot i o n al i t em s f r e e of c os t o n a c hi e v e m e nt o f s al es t ar g e t s gi v e n b y t h e c om pa ny . P l e a s e fi nd en c l os e d as s a m p le c o py of o ne of s c h em e c ir c ul at ed d ur i ng t h e f i n an c i al ye ar 2 00 9 -20 10. A l s o f i n d en cl os e d 5 Sa les Bi l ls ( as sa m pl e Bi l ls ) g i v i n g pr o o f of P r om ot i on al it e m s be i n g d is p a tc he d t o di s t ri bu t o r s. F ur t h e r Bu s in e s s pr o m o ti on ex p e ns e s al s o i nc lu de s th e e x p en s es o n ac c o u nt o f pur c has e o f c at al o gu e s , vi s ua l a id s a n d pr i ce li s t s o f t h e c om p a ny t o be ci r cu la ted t o th e d is t r i b ut or s / s t oc k i es t / r e t a i l e r s an d t o t he m ar k et i ng s t af f o f t he c o m p a n y . ” 9. 3 F ur th e r, t he r e is a re p l y da t e d 01 . 1 2. 20 16 fur ni sh ed b y t he a s s es s e e dur i n g t he co urs e o f ori gi na l as s e s s me n t pr o c e e di n gs fo r A . Y. 20 14 - 1 5, w he r ei n, t he s a me fa c t w as re i t e ra t e d a t S . N o. 14, pa g e 1 1 8 o f P ap e r B oo k- 1, a s i s e vi d e n c e d b y t he foll ow i n g pa r a g ra ph o f t he s a i d re pl y: - 1 4. “ T he co m p an y pur c h as e a nd s e n d t h e g i f t i t em s a cc or di ng t he st oc k ie s t s c he m e b e i n g fl oa te d b y t h e c om p an y d ur i n g t h e r el e v an t p er i o d. T he gi f ts a r e p ur ch as e d b y t h e c om p any a n d b o o k ed in B u s in es s p r om ot i o n a c c ou nt an d t he s am e ar e s e nt t o s t oc k i est o f t he c om pa n y a c c or d i n g t o th e t a r ge t s a c hi e ve d t hr o u gh di s t r ib ut io n ne tw or k. T he c o m pan y do e s not g iv e a n y g if t or fr e e bi e s t o th e d o c t or s . 9. 4 S i mi l a r a r e t he q u e ri es an d r ep li e s i n o t h e r as s e s sme nt y e a rs as w el l . In s o fa r a s t he s e ar ch a ss e s s me nt s u nd e r se cti o n 15 3 A ar e 46 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana c on c e r n e d a n d w h ic h ha ve b e e n t he s ub j e c t ma tt e r u/s 26 3 o f t h e A c t, w e fi n d ou r se l v e s i n ag r e e m e nt w i th t h e c on t e nt i o n o f t h e L d. A R t ha t i ni ti a t i o n o f as s e s s me nt p r oc ee di ngs u/ s 15 3 A an d th e or de r s he e t e nt ri es r e l a ti ng t o s e a rc h as s e s s me n t s c o nc lu s i v el y pr ov e t ha t a l l t he s e a s s es s men t s w e re bei ng pr o c e e d e d w i t h s i mu l t an eo u s ly as i s e vi de n t fr o m P a p e r Bo ok -V , pag es 1 t o 79 a nd t he ch ar t s ho wi n g t he s eq ue n c e o f e ve nt s f o r t he s e a r ch a s s es s me n ts vi s -à - vi s i s su e of n o t ic e s u/ s 15 3 A, 14 3(2 ) , 1 42 ( 1 ) an d th e s a me a re i de n ti c al i n al l t he as s e s sme nt y e ar s a nd t he sa m e A s s es s i ng O ff ic e r h a s fr a me d t he a s s e ss me nt s fo r a l l t h e e l e ve n ye a rs on a si ng l e da y i . e . on 30 . 12. 20 1 9, on a si m il a r pa tt e rn. 9. 5 We ha ve a l s o t a k e n no t e o f t he fa ct t h a t i n r espe c t o f s e ar ch a s s es s men t s , t h e s a me A ss e s s i ng O ff i c e r h a d d ul y a ppl i e d hi s mi nd t o t he i s s ue o f ‘ Bus i ne s s P r o mo t i o n’ e xpe ns e s a s is e vi d en t fr o m t h e qu e r i e s a n d r e p l i es fu rni s h e d d uri ng t he c o u rs e o f s e a r ch a s s es s me n ts a nd w e f i n d t h a t t h e a s s es s e e vi de r e pl y d a t e d 1 3 . 12. 2 01 9, w h ic h w as fu r ni s h e d d u ri ng t h e co urs e o f a s s es sm e n t pr o ce e d ings f or A Y 20 15 -1 6 , ha d ca t e g o ri c al l y s t a te d t ha t t h e a s s es s e e c o mp a n y i s no t gi v in g a ny g i f t i n ki nd o f ca s h or o th e rw i s e t o a ny D oc to rs / M e d i c al P r a ct i t i o ne rs a n d fo r th a t , th e re l ev a nt p a ra gr a p h o f s u ch r epl y, dat ed 1 3. 12. 20 19 i s b ei ng re p r o du c e d he r e i n u n de r : - “ 5. T he as s e s se e d e al s i n m a rk e t i n g an d t r a di ng of G e n e r i c ph ar m ace u t i ca l, He al t h c ar e a nd c os m et i c pr o d u ct s all ov er In d i a a nd a pp o in te d n um be r s o f C & F a ge nt f or d is tr i b ut i on an d s a l e o f g o o ds . S i n ce t he c om p a n y d e al s i n t h e ge n e r i c 47 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana go ods w hi ch d o es no t r e qu i r e a ny pr e s cr i pt i o n fr o m an y D oc to r / m e di c al pr a ct i t i o ne r an d th e c om p any ha d not p ai d an y t yp e of g if t or c as h or ot he r wis e t o a ny s uc h pr o fe s s io na l . 6. F ur t h e r c l a r if i e d t h at t he c o m p any ha d p o l i c y of B u s i n es s P r om ot i o n t o gi ve s om e fr e e g i ft s t o t he d e a l er s as q u an t i t y di s c o un t w h i c h i s pu r el y fo r t h e p ur p os e of s al e s in cr e m en t. T he t ot al s u c h m a t er i a l p u r ch as ed a nd de li v er e d h ad d ul y be e n a c c o u nt e d f or i n t he bo ok s o f a c co u nt s . T he pre s cr i be d r at e l i s t o f t h e as s e s s ee is at t a ch ed h er e w i t h a s a pr o of of s al e s p r om ot i o n. ” 9. 6 We a r e a l s o in a gre e m e n t w i th t h e L d. A R th a t th e o ri gi na l a s s es s men t s ha v i n g m er ge d w i t h t h e a s s e ss me nt s fr a me d u/ s 15 3 A a nd fu r t h e r, s in c e a l l t he s e a r c h as s e s sme nt s w er e be i ng pr oc e e d e d w i t h s i mul t a n e o us l y , i t c a n no t b e s ai d t ha t t her e w a s n o a p pl i ca t i o n o f mi nd by t he A s s e ss in g O f fi ce r on t he is s ue o f ‘B us in es s P ro mo t io n’ e xp e ns e s . T he A s s es s i ng O ffi c e r c o nc e r ne d w a s c on s ci ous o f t hi s i s s ue a n d t h e s a me i s b o rn e o ut f ro m t h e r e pl y o f t he A s s es s i ng Off ic er i n t h e ‘A nn ot a t e d R ep or t ’ , a s e nc l os ed a t pa g es 1 9 3 to 1 9 7 o f P a pe r B oo k-1 a nd i n t h i s re po r t d at e d 18. 0 3. 20 21 , th e A s s e ss i ng O f fi c e r h as c o mm u n i c a t e d as un de r : - “ H owe v e r , fr o m t he pe ru s a l o f t he re c or d i t h as be e n fo un d t h at t he a s s es s e e c om p an y d e a l s i n m ar k et i ng a n d tr a di n g of g e n e r ic p ha rm a ce ut ic al , he a l t hc a r e an d c o s m e t i c pr o du ct s t hr o u gh C &F ag e nt s f o r di s t r ib u t io n a nd s a l es o f g o ods an d t h e c om p an y h as n o t m a de an y e x p e ns e s o n an y g if t s t o m ed ic al pr a c t i t i o ne r s or t h ei r pr of e s s io n al as s oc i a t i o ns . T he i t em s m e nt i on e d i n th e au di t ob j e c t i ons ar e gi ve n a s g i f t s t o t h e d e al e r s f or bul k pu r ch a s e a nd s a l e s i ncr e m e n ts . No ad v e r se f a c t s as 48 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana s t at e d i n t he a u d i t ob j e c t io ns w e r e f o un d e i t h e r du r in g t he co ur s e of s ea r c h or d u r in g t h e c our s e o f as s e s sm ent p r oc e e di n gs . T hu s, th e i s s ue r ai s ed by t he r ev en ue a ud i t par t y ha v e b ee n e x a m i ne d d u r in g t he c o ur s e o f as s e ss m e nt p ro ce e di ngs u/ s 1 53 A r ws . 14 3(3 ) o f th e IT . A c t, 1 96 1 a n d t he obj ec t i o n w as f ou n d t o b e w i t ho ut an y ba s is an d is no t a c c e p t a b l e. F ur t h er , i t i s pe r t in e n t t o m e n t i o n her e th at t he r e ve n ue a ud i t p ar t y at t en de d t h e of f i c e du ri ng F e b 20 21 an d a u di t e d t he a s s es s m e nt c om pl e te d u/ s 1 53 A r . w. s . 143( 3) o f t h e 1 T . A ct , 196 1 i n t hi s ca s e but n o ob j e c t i on r ai s e d b y th em . ” 9. 7 T he n a ga in , t he r e i s a s up p l e m e nt a r y ‘A nn o ta t e d R e p or t’ , da t e d 26 . 0 3. 2 02 1, p l a c ed a t pa ge s 1 96 t o 1 97 o f t h e pa p er b oo k a nd e ma na t i n g fr o m t h e s a me A s s e s s i ng O ff ic e r i n w hi ch i t h a s ca teg o ri ca l ly be e n c o mm u n i c a t e d b y t he A s se s s i ng O f fi c e r co nc e r n e d to t he Ld . P CIT t ha t t he as s e s s ee ha d n o t pr ov i d e d a ny b e ne fi t t o t he D oc to r s . The s a me is e vi de n t fr o m t h e fo ll ow i ng p a r a gr a p h s : - “ I t is s ubm i t t e d th a t t h e a b ov e i ss u e w as de a l t d uri n g t he c o ur s e of s e a r ch as s es s m e nt pr o c e e di ng s w hi ch we r e c o m p l e t ed o n 30. 12 . 2 01 9 . D ur i n g th e c our s e o f a s se s sm en t p r o ce e di n gs u/ s 1 53 A r . w. s 143( 3 ) o f t h e I T . Ac t , 19 61, t h e a s se ss e e was as ke d d ur i n g t h e c our s e o f as s e s s m ent pr o c e ed i ng s t o g iv e de ta i l no te o n bu si ne s s m ode l , nat ur e o f b u s i n es s . de t a i ls o f c om m is s i on pa i d, bus i ne s s pr om o t i o n ex p e ns e s , s c he m e, r eb at e a n d d i s co un t ex pe ns e w h i c h we r e e x am i n e d a nd c om par e d wi t h th e pr e vi o us y e ar an d t he t ur no v e r of th e a s s es s e e ( co py of th e o rd er s h ee t d at ed 01 . 1 1. 20 1 9 ), i t w a s f o un d t h a t t h e as s es s e e us ed t o p r o vi d e v ar i ous gi f t it e m s t o t h e di s t r ib ut or s /C&F d is t r i b ut io n ag e n t s l in k e d w i t h t h e ir v ol um e of or de r a n d s al es m ad e b y t he d is t r i bu t or co p y o f s am pl e s c he m e an d gi ft s pa m ph le t ) a nd n ot th e doc t or s 49 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana T he as s es s e e c om p any de a ls i n m ar k e ti n g a nd t r a di ng o f g e n er i c p har m a c e u t i c a l , he al th ca r e a nd c os m et i c p r od uc t s t hr o u g h C F a g e n ts f o r d is t r i b ut i on a nd s a le s o f go o ds an d e xp ens e s o n b us i n e s s pr om ot i o n an d S ch e m e, r e b at e & D i s co u nt w e r e i n c ur r e d f or b ul k p ur ch as e p r om o t i o n a n d s al e s i n cr e m en t s . T he b us i n es s pr o m o t i o n e x pen s es we r e t e s t c h e ck ed a nd no d et ai l s of pr ov id i n g a ny b en e f it s to t he d oc to r s was f ou nd a nd t h us no a dv er s e f a c t s as s t a te d i n t h e a ud i t o bj ec ti on s w er e fo u nd d u r in g t h e c our s e of a s s es s m ent p r oce e d i n gs . ” 9. 8 T h us , fr o m t h e v a r i o us d oc u me nt a r y e v id en c e s a s f urn is h e d b e for e us a nd pl ac e d i n t h e pa pe r b o o k, w e h a ve no h es i t a ti o n i n h ol d in g t ha t t he no ‘ F r ee bi e s / G i ft s ’ ha ve be en gi v e n t o t he D o ctor s/ M e d i c a l P ra c t i t io ner s . W e ha v e al s o g on e t h r ou gh t h e j u dg ment i n t he c a se o f ‘A pe x L ab ora to ri es P vt . Lt d. ’ ( s u pr a ) i n de t a i l an d w e fi nd t ha t w hi l e de l iv er i n g t he j u d g me nt , t he H on ’b l e A pe x C o ur t h a d c a te g or ic a l l y m e nt i on e d a b o u t fre e b i es / gi ft s gi v e n t o t h e D o ct o r s/ M e d ic a l P ra c t i t io ner s an d w e h a ve a ls o re f e rr e d t o t h e Re gul at i ons o f t h e M ed ic a l Co u nc il o f I n d i a o f 2 0 02 w hi ch de b a rs t h e D oc t o rs fr o m a cc e p ti ng s uc h g i f t s a nd w e al s o n ot e t ha t t hi s j u dg m e n t re la t es to t h e G i ft s r ec ei ve d b y ‘ M e di ca l P r ac t i t i on e rs / D oc t o r s on l y w he re a s i n t he pr es e nt c as e , i t i s a fa c t o n r e c ord t h at t he A O , af te r m a k in g i n -d e pt h e nq ui ri e s /e x a mi n a t i o ns /v er i f ic a ti on s o f ‘B us i n e s s Pro mo t i o n’ e x p e ns es ha d fo u n d t h a t n o ‘ F re e b i e s / G i ft s ’ w er e g i v e n t o D oc to rs / M e d ic a l P ra c t i t io ner . A bo v e al l , t h e c o nc e rn e d A s s e ss i ng O ffi c e r, w ho fr a me d t he s e a r c h a s s es s m en ts h a s c a t e g or i c a ll y a d mi t te d in ‘ A n not a t e d Re p or t ’ 50 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana t ha t n o s u c h gi f ts h av e be e n gi v e n t o D oc t ors / M e di cal P ra c ti t io ne r s by t he a s s es s e e an d, t he re for e, in o u r c on si de re d vi ew, t he L d. P CI T (C e nt ra l ), L ud hi a n a w a s n ot j us t i f i e d i n c a nc e l l i n g t h e a s s es s m en ts fr a m e d by t h e A s s e s s in g O f fi c e r vi d e o r d e rs d at e d 30. 12. 20 19 o n t h e i s s ue o f f re eb ie s / g i ft s to t he D o ct or s / M e di c a l P r act i t i o n e r s an d t o t ha t e xt en t t h e o rd e r o f Ld. P CI T (C e n t r a l ), Lud h i a n a i s se t as i de . 9. 9 W h i le gi vi ng t hi s f i n di n g, w e h a ve a l s o gon e t h r ou gh t he f in d in g o f t he Ld. P CI T fr o m P a ra 5. 4. 1 t o P a r a 5 . 9. 2 of t he i mp u g ne d or d e r as w el l as t h e re bu t t a l ma de b y t he Ld . A R i n ‘ t a b ul a r fo r m’ , w hi ch f or th e s a ke o f re ad y re fe r e nc e, i s b ei ng r ep r o du c e d h e r e i n u nd e r : - CONTENTION OF THE LD. PCIT (CENTRAL) REPLY OF THE ASSESSEE PARA 5.4.1, PAGE 12 It has been observed by Ld. PCIT that under block assessment scheme u/s 158BC, only one single assessment was required to be made to assess the undisclosed income in different assessment years and, whereas, under the provisions of section 153A, the Assessing Officer is required to exercise normal assessment procedure i.e. to assessee or reassess the total income, where both disclosed and undisclosed income is brought to tax. The facts with regard to 158BC assessments is not applicable in this case, but even u/s 153A as per decided case laws, only ‘undisclosed income’ is sought to be assessed based on incriminating material found during search and if particular income/facts has been disclosed in the regular return, the same cannot be disturbed until or unless, some incriminating material is found. Reliance is being placed on the decision of Delhi High Court in the case of ‘Kabul Chawla’ and Others and numerous judgments of ‘Chandigarh Bench’ of the ITAT and of different coordinate Benches of ITAT. Para 5.4.3 Again, the Ld. PCIT here has mentioned that in the procedure for assessment u/s 153A, once the assessment is reopened, the Assessing Officer can take note of This contention of the Ld. PCIT is again not correct as discussed above. 51 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana disclosed income in the earlier return and take into consideration everything, even if it is not unearthed during search. Para 5.6 The PCIT has referred to ‘Medical Council (Professional Conducts) regulation Act 2002’, with code of conduct for Doctors in relation with pharmaceutical companies and then in every para in, it has mentioned about, Medical Practitioners/ doctors only. Ours is a case of pharmaceutical company and as stated above repeatedly, both in original assessments and in the assessments framed u/s 153A, we have clearly demonstrated and furnished documentary evidences in the shape of ‘sale bills’ issued to the Distributors/Stockiest, and no freebies have been given to the Doctors /Medical Practitioners from the sale bills and in various schemes, of business promotions, it has clearly been mentioned that such incentives are for distributors/stockiest. Further, these guidelines given by the Medical Council are only applicable to the Doctors and not to the Distributors/Stockiest. Para 5.7, page 15 & 16 The PCIT has quoted CBDT circular, in which, again, it has been mentioned about Freebies to Medical Practitioners and their professional associates and the violation of the provisions of Indian Medical Council (2002), have been referred to. Our stockiest/Distributors are not ‘medical professionals’ and they are not under the guidelines of Medical Council of India. Para 5.8, Page 16 In this paragraph, it has been mentioned by the Ld. PCIT that section 37(1) would cover acceptance of Freebies by Medical Practitioners, which is prohibited by law and then, the reference has been made to the Judgment of ‘Apex Court’. The Ld. PCIT (Central), Ludhiana has grossly erred in mentioning these facts, since these incentives are being given only to Stockiest/Distributors, under a scheme to make more sales and a bare look at the judgment of ‘Apex Court’, which has been placed at pages 129 to 159 of the ‘Judgment set’ and at so many paragraphs, of the case, it has been clarified, especially at page 153 of ‘judgment set’ in para 33 that pharmaceutical company gifting the Freebies to Doctors etc. is clearly prohibited by law and not allowed to claim deduction u/s 37(1). In our case, the person concerned, who are receiving incentives etc. 52 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana are not doctors, but distributors/stockiest. Further, a reference may be made to the judgment of Hon’ble H.P. High Court in the case of ‘Confederation of Indian Pharmaceutical Industries’ reported in 353 ITR 388, in which it has been held as under:- “This court is not oblivious to the increasing complaint that ‘medical practitioners’ do not prescribe ‘generic medicines’ but prescribe‘ branded medicines’, only in lieu of the gifts and other freebies given to them by some particular Pharmaceutical Industries.” We are manufacturing only generic medicines and, as such, the facts are totally different in our case and copy of judgment is placed in Judgment Set-II. Page 17 The PCIT has quoted a particular paragraph from the judgment of ‘Apex Court’, where the regulations of Medical Council (Professional Conducts) has been discussed. The facts are not applicable to our case, since we are giving incentives to only Distributors/Stockiest and have no link or connection with the Medical Practitioners / Doctors. Para 5.9.1 The PCIT has again mentioned that u/s 153A, the Assessing Officer can touch upon any issue and his jurisdiction is not restricted to issue arising from incriminating material. This observation of the Ld. PCIT is incorrect as stated above and even, further, it is submitted that since that issue of business promotions has been examined, both in original assessments framed u/s 143(3) and also during the search assessments u/s 153A,which have been framed simultaneously on the basis of almost similar questionnaire of same dates as is evident from order sheet entries u/s 153A assessments, for all the years, placed in the Paper Book-5. Thus, there was due application of mind. Even the order sheet entries are similar in all the years. Para 5.9.2 The PCIT has mentioned that assessment for Asstt. Year 2017- 18, 2016-17 and 2013-14 have not The assessment for Asstt. Year 2017-18 got abated in view of search conducted on 23.03.2018 and even if, two assessments were framed u/s 143(1), it is submitted that, the 53 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana been framed u/s 143(3) and for Asstt. Year 2018-19, the assessment was framed for the first time. assessment framed /s 143(3) are for Asstt. Years 2010-11, 2011-12, 2013-13 & 2014-15, where the detailed investigation/examination was made on the issue of ‘business promotion expenses’ and three assessments had also been framed u/s 143(3) as per Chart at page no. 1 of PB-3,and therefore, once the issue has been examined in one particular year and here number of times in different assessment proceedings, the issue have been examined, thus, on the basis of consistency and without there being any other material on record, the same view was liable to be taken as per the following Judgments:- a.CIT Vs/ Dalmia Dadri Cement Ltd. (1970) 77 ITR 410 (P&H) b. Berger Paints India Ltd. Vs CIT (2004) 266 ITR 99 (SC) c. DCIT V/s United Vanaspati Ltd. (2005) 275 ITR 124 (AT) (TM) d. Radha Soami Satsang Vs CIT(1992) 193 ITR 321 (SC) e.CIT V/s Arthur Andersen & Co.(2009) 318 ITR 229 (Bom) f. Commissioner of Income Tax V/s Leader Valves Ltd.(2007) 295 ITR 273 (P&H) g. PRINCIPAL CIT V/S GRASIM INDUSTRIES LTD. 424 ITR 236 (BOM) h. CIT (EXEMPTIONS) V/S INDIA HABITAT CENTRE 425 ITR 325 (DEL) i. DCIT Vs Marigold Premises Pvt. Ltd. as reported 83 ITR (Trib.) 32 (Pune) j. CHITTHARANJANA . DASANNACHARYA VS. CIT 429 ITR 570 (KARN) DATED 23.10.2020 k. TIRUPATI PROCON PVT. LTD. VS. ITO 85 ITR (TRIB) 76 (DEL) DATED 14.01.2021 54 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 9. 10 We fi n d no fl aw i n t h e a b o v e re bu tt a l by t he a s s es s e e a nd w e ar e o f t he vi ew t ha t t h is re b u t t a l , w hi c h is b as e d o n re c or d s , ca nn o t be ne g a t e d. T h e re fo r e, w e ha ve no he si t a t i o n in h ol di ng t ha t t he n a t u r e o f t he e x pe ns e s u n de r th e he ad ‘ B us i ne ss P ro m ot i on ’ i n a l l t he y ea rs un de r c ons i de ra ti o n h a v e t ho ro ug hl y b e e n ex a mi n e d/ ve ri fi ed b y t he A s s es s i ng O ff ic er , w h o fra me d t h e se a rc h as s e s sme nt s s i mu l t a ne o us l y a nd, a s s u ch , w e ar e o f t h e co ns i de r e d vi ew t h a t t h e c on ce rne d A O ha d d ul y a p pl ie d hi s mi nd o n t hi s i s s ue a nd t h e re c or ds o f t h e va rio u s a s s ess me n t pr o c e e d i n gs , bot h i n th e o ri gi na l a nd i n s ea rc h as se s s me n t , be a r t es t i mo n y to t he f ac t t ha t , no ‘ F r ee b i e s /G i ft s ’ ha ve b e e n g i v e n t o t he M ed ic a l P r a ct i t i o n e r s/ D oc t ors an d t ha t s u ch g i ft s we r e o n l y g iv en t o t h e S t oc k is t s / D is t r i b ut or s o f th e c o m pa n y a s i s e vi d e n t fr o m t h e v a ri ous pr o mo ti on a l s c h e m es l au nc h ed by t h e a s s e s se e co mpa ny i n di ff e r e n t ye a rs . 9. 11 I t w o u ld b e r e le va nt h er e t o r e f er t o t h e j u dg m e n t o f t h e H on ’ bl e D el hi H i g h C o u rt i n t he c as e o f ‘ C IT v s. S unb e a m A ut o r ep o r t e d i n 3 32 IT R 16 7’ , w he r e i n t he H o n ’b l e C o u rt ha s h e l d t ha t the d is t i n c t i o n be t w e e n t he ‘l a c k o f e n q ui ry ’ a nd ‘ i n a d e qu at e e n q u iry ’ ha s t o b e c ons i de re d a nd i t h a s be e n h el d t h a t i f t he r e w as an e nq ui ry , ho w s o e ve r i na de q u a t e t h a t w o ul d no t gi ve o c c as i on t o t h e C o m mis s i on e r, w h o pa s s ed a n or de r u/ s 263 o f th e A c t , ju st b e c a u s e h e h as a d i f fe re n t op i n i on i n th e ma t t e r a n d un de r s uc h c i rc u mst a n c es , it w a s hel d t ha t t h e 55 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana a s s es s men t c a n no t b e h e l d t o b e as e rr on e o us a nd pre j u di ci a l to t h e i nt er es t o f t h e re v e n ue . 9. 12 S i mi l a r, i s t h e ob s e r va t i on o f t he H on ’ bl e D e lh i H i gh Co u rt i n t h e c as e o f IT O v s . D G H o us in g Lt d. re po r te d i n 3 39 I T R 32 9 ( D e l h i ) w he r e t he s a m e is s u e w a s e la b or at e ly di s c u s se d. O n an i d en ti c al i s s ue , t h e H on’ bl e J ur is d i c t io na l H i gh C o u rt i n th e c as e o f CIT vs . U n iq ue A ut o F e lt s P vt . L t d. re po rt e d i n (2 0 0 9) 3 0 D T R 2 21 ha v e h e l d as u nde r : " 5. Fr o m t he fi nd i ng o f t he T r i b u n al , i t is c l e ar th at t he a s s es s e e ha d gi ve n pr o p er e x p l a n a t io n by f i l i n g t he ne c es s ar y con fi r m a t i o ns . I n vi e w o f s u c h a f i n d i n g, t h e T r i bun a l ri g h t l y h e ld t ha t po w er u nd e r s ec t io n 26 3 o f t he A c t co ul d be e xe r c i s e d w he r e vi e w t a k e n by an A s se s s i ng O f f i c er w a s er r on e ou s . W h i le e x e r ci s i ng s uc h p o we r , th e C o m m is s i one r wa s bo u n d t o ta ke i nt o ac c ou nt al l r e l e v a nt f a ct s . I f o r d er i nv o k i n g t h e sa i d po wer pr o c e eds on an e rr o ne ous as s um pt io n, t he s a m e c ou l d b e s e t as i de by t he T r ib u na l . Fi nd in g of t he T r i bun a l i s n ot sh ow n t o be p er v e r s e. No s ub s t an ti al qu es t i o n of l a w ar i s es . " 9. 13 S i mi l a r l y, t h e H on ’ b le A p e x C o u rt i n t h e ca s e o f P CI T vs . S hr ee j i P ri nt s (P ) L t d . r ep o rt e d in 1 30 t a x ma n n. c o m 2 94 h a s he l d a s unde r : “ Se ct i o n 6 9, r e a d wi t h s e ct i on 26 3, of t h e I nc om e- t ax A ct , 19 6 1 - U ne x pl ai ne d i n v es t m e nt s (U ns e cu re d l oa n s) - A s s es s m e nt y e a r 2 0 13 - 1 4 - As s e s s ee -c om p an y l oa n s fr om t wo d if f er e n t c om pa ni e s Com m i s si on er no t i n g t ha t s ai d i n ve s t m e nt i n as s e s s e e' s na m e i n ba l a n ce s h ee t of r es pe c ti v e co m p an i e s e xe r ci s e d h is r e vi s i o nar y po we r s a nd pas s e d a n or de r w i t ho u t gi v in g a n o pp or t u n it y t o as s es s e e o f b ei ng h e ar d, i nv ok i n g Ex p l a na t i on 2 t o s ec ti on 26 3 - H i g h c o ur t b y 56 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana i m pu gn e d or d e r he l d t h at s i n c e As s e s s i ng O f f ic e r has m ade i nq u ir e s i n d et a i l s a n d a c c ep t e d g en u i n e ne s s of l oa n s r ec ei v e d by as s es s e e , s uch v i e w of A s s es s i ng O f fi c er w as a pl a u s ib le vi e w a nd s a m e ca n n ot to b e c ons i de r e d e rr o ne ous o r pr e ju di ci al t o in t e r es t o f r e ve n ue i m p u gn e d o rd er w a s to be d i s m i ss ed - H e l d, y es [ P ar a 2] [ In f av ou r o f a ss e s s e e] ” 9. 14 S i mi l a r l y, t h e H on’ bl e A p e x C ou rt i n t he ca s e o f C o mmi s s i one r o f In c o m e - t a x vs . N i r a v M o di r e p or t e d i n [ 20 1 7] 7 7 t a xm a n n. c o m 1 5 (S C ) , ha s he l d a s und e r : “ Se ct i o n 68 r e a d w it h s ec ti on 2 63 , of th e I nc om e- tax A ct , 1 96 1 - C a s h cr e di t ( G i f t ) - A s s e ss m e nt ye ar s 20 07- 0 8 an d 2 00 8 -09 - As s e s s e e r e ce i ve d c er t ai n am ou nt a s g if t s fr om hi s f a th er an d s is t e r w ho we r e no n-r e s id en t s i n I nd i a - As s e s s in g O ff i ce r af t er m ak in g de t a i l e d e n qui r i e s , to o k a vi e w t ha t a s se s s ee ha d d u l y pr ov ed i d e nt it y , s ou r ce a nd cr e di t w or t h i n es s of do nor s - C o m m is s i on er , ho w e v e r , pas s e d a r e vi s i o na l or d e r u n de r s e ct i o n 26 3 d i r e ct i n g A s se s s i ng O f f i c er t o e n q ui r e i n t o c a p ac i t y o f d on ors an d t o de c i de ab o u t ge n ui ne ne s s o f gi f ts af r es h - It wa s n o t e d th at C o m m i s s io ne r i n hi s o r d er of r e v is i on, di d no t i n d i c a t e a n y d o ub t i n r e s pe c t of g en ui ne n ess of e v id en c e pr o d uc e d by as s e s s ee - Mor e o v er , s at i s fa ct i o n o f As s e s s in g O f f ic e r on bas i s o f do c um e n t s pr o d uc e d w as no t s h o wn to be e r r on e o u s - H i gh Co ur t by i m p ug n ed or d er he ld t ha t i t w as a ca se wh e r e a v i e w ha d be en ta ke n b y A s s e s s i ng O f fi c er af t er m ak i ng pr o pe r e nq ui ry an d, th u s , T ri bu n al was j us t i f i ed i n s et t i ng as i de i m p ug n e d r ev is i on al or d er - Wh e t h e r S pe c i al L e av e P et i ti on f i le d a ga in s t i m pu gn e d or d er wa s t o be d is m i s s ed - H e l d, y e s [ P ara 2] [ In f av o u r o f a sse s s e e] ” 57 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 9. 15 Th us , th e c r u x i s t ha t o n c e t h er e i s an a p pl ica t i o n o f mi nd a n d e nq ui ry ha s b ee n m a de by th e A O , th e n i n s u c h c i rc ums t a nc e s , t he a s s es s men t c a n not be b r a n de d a s e r ro ne ou s a n d p r e j udi c i a l t o t he i nt er es t o f re ve nu e a nd w e h a ve n o h es i t a t i on in s ett i n g- as i de t h e o rd e rs a s pa ss e d b y t h e L d. P CI T u/ s 2 6 3 o f t he A ct o n th e i s s ue o f ‘F r ee bi es / G i ft s ’ t o th e M e d i c a l P r a c t i t i on e rs / D o ct or s i n a l l t h e 11 y ea rs un der c o ns i d er at i o n . 9. 16 A s fa r as t h e al t er na te c o nt en ti on o f t he a s se s se e th at t he pr o c e e d i n gs u/ s 2 6 3 o f t h e A c t w e re i ni ti a t e d on t he ba s i s o f a n au di t O bj ec t i o n i s c o nc e rne d, s in ce w e ha v e al r e a d y s et as id e t he i mp ug ne d or d e rs o n t he i s s ue , t hi s a lt e r na t e p l e a as s u mes o nl y a ca de mi c i mpo r t a n c e a nd w e a r e n ot i n c l i n e d t o a dj ud i c a t e o n t h i s is s u e a t t h e pr es e nt j u nc t u r e. 9. 17 We m a y a ls o me nt i o n h e r e t ha t i n a s s es s me n t y ea r 20 17 - 18 , be s i d es t h e i s s ue o f bus i ne s s p r o m ot io n e xp e ns e s , th e r e i s a n ot he r i s s ue o f n on -r e fe re nc e t o t h e T r a ns f er P r i ci n g O ffi c e r ( TP O ) i n r es p e c t o f ‘S p ec i f i e d D o me s t i c T ra ns a c t i o ns ’ a n d th e Ld . A R h as b e en fa i r e n o ug h t o c o n c e de t ha t t h e A O w as ma nd at or il y re qu i r e d t o re fe r t he sa m e t o t h e T P O and , t he r e f or e , w e hol d th a t t h e L d. P CI T w a s jus t i f ie d in s et t i ng- a s id e t h e as s e s s me nt o n t he i s s ue o f n o n- r e f er en ce t o t h e TP O i n A s s es s me n t Y e ar 2 01 7- 1 8. 58 ITA 344 to 353-c-2022 - Leeforad Healthcare Limited, Ludhiana 10 . 0 In t h e f i na l r e s ul t, a l l t h e a p p ea l s by t he as s e s s ee a re p a rt ly a ll ow e d. O rde r p ro no un c e d o n 29. 0 7. 2 02 2 . Sd/- Sd/- (N.K. SAINI) (SUDHANSHU SRIVASTAVA) V i c e P r e s i de n t J u di c i a l M e m be r Dated : 29. 07.2022 “आर.के .” आदेशक त*ल+पअ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु -त/ CIT 4. आयकरआय ु -त (अपील)/ The CIT(A) 5. +वभागीय त न0ध, आयकरअपील#यआ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar

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