Palsons Derma Pvt. Ltd. vs. DCIT, Circle-11(1), Kolkata

Parties Involved

Facts Summary

The assessee, Palsons Derma Pvt. Ltd., is a company engaged in manufacturing and sale of pharmaceuticals, specifically scalp and skin lotion and tablets, and also runs skin clinic centers. The company filed its income return on 25.09.2014, which was subsequently revised declaring total income of Rs. 2,69,55,900/- after claiming deduction under Chapter-VIA of Rs. 52,000/-. The Assessing Officer completed the assessment under section 143(3) of the Income Tax Act, determining the total income after making various additions and disallowances at Rs. 2,99,60,930/-. The order was placed before the Commissioner of Income-tax (Appeals)-NFAC, Delhi, who dismissed the assessee's appeal. The assessee filed an appeal against the order, challenging the disallowances made by the Commissioner of Income-tax (Appeals)-NFAC, Delhi.…

Legal Issues

• 1. Disallowance of Rs. 27,11,109/- at the flat rate of 10% out of Consultation fee paid to Doctors as well as Promotional gifts and Overseas Annual Conference u/s 37 of I.T. Act.
• 2. Disallowance of Rs. 90,267/- out of Subscription & Donation A/c by referring to Section 37 of I.T. Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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