ORDER :

1. Leave granted. The appellant (hereinafter “Apex”) is aggrieved by a judgment of the High Court of Judicature of Madras¹ [Tax Case Appeal No. 723 of 2018, dated 18.03.2019] wherein the Division Bench upheld an order of the Income Tax Appellate Tribunal² [IT ACT No. 1153/Mds/2014, dated 29.01.2018] (hereinafter “ITAT”) which in turn upheld an order of the Commissioner of Income Tax (Appeals)³ [I.T.A. No. 10/13-14/LTU(A), dated 29.01.2014] (hereinafter, “CIT[A]”). The CIT(A) had partly allowed an appeal from an order of the respondent Deputy Commissioner of Income Tax⁴ [G.I. No. PAN AAACA5174G, dated 21.03.2013] which partially allowed amounts claimed by Apex as ‘business expenditure’ under Section 37(1) of the Income Tax Act, 1961 (hereinafter “IT Act”).

2. The facts in brief are as follows:

On 01.08.2012, the Central Board of Direct Taxes (hereinafter “CBDT”) issued a circular⁵ [Circular No. 5/2012 (F. No. 225/142/2012-ITA/II)] which clarified that expenses incurred by pharmaceutical and allied health sector industries for distribution of incentives (i.e. “freebies”) to medical practitioners are ineligible for the benefit of Explanation 1 to Section 37(1), which denies the a