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2022 (11) TMI 1163 - AT - Income TaxGenuine business expenditure - allowability of referral fees paid to doctors and nursing home by the appellant company - AO was of the opinion that the payment of referral fees to doctors and nursing home would amount to violation of the provisions of Medical Council (Professional Conducts, Etiquettes and Ethics) Regulation Act, 2002 - HELD THAT:- Issue squarely hit by the Explanation 1 to section 37 of the Act. We find that an identical issue was dealt in the case of Apex Laboratories (P.) Ltd. vs. DCIT, [2022 (2) TMI 1114 - SUPREME COURT] wherein, the Hon’ble Apex Court held that gifting freebies, and payment of referral fees etc. is clearly prohibited by law and cannot be allowed as deduction u/s 37(1) of the Act. We are of the considered opinion that referral fees paid to doctors and nursing home cannot be allowed as deduction while computing the business income of an assessee. Accordingly, we confirm the orders of the lower authorities. Thus, we do not find any merit in the ground of appeal filed by the appellant-assessee.
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