The Supreme Court said that giving free gifts to doctors by pharmaceutical companies to promote the sale of medicines is a complete offense under the law. Along with this, the Supreme Court on Tuesday dismissed the company's petition for deduction under the Income Tax Act in the name of encouraging doctors. The Supreme Court has termed as "a matter of great public importance and concern" the manipulation of prescriptions by pharmaceutical companies in exchange for free gifts given to doctors.

They are offered by pharmaceutical companies from gifts like gold coins, fridges and LCD TVs to international trips. Apart from this, international tours are also included as a gift for attending a holiday or medical conference.

Justice U. You. A bench of Justices Uday U Lalit and Justice S Ravindra Bhat dismissed the appeal of M/s Apex Laboratories Pvt Ltd against the order of the High Court. Not only this, it also settled a clever legal case where exemption from tax deduction was sought for gifts given to doctors.

The company had contended that though the acceptance of such gifts to medical workers is prohibited under the purview of the law, it has not been made an offense under any law, so the companies can avail tax benefits on account of the amount spent on these gifts. are entitled to.

The relevant laws and rules have been explained in the decisions written by Justice Bhat on behalf of the bench. The court said that giving gifts to doctors by pharmaceutical companies is prohibited under the purview of the law and in such a situation tax benefit under section 37(a) of the Income Tax Act cannot be claimed. The Supreme Court said that by doing so, it would completely affect public policy.