Stemade Biotech (P.) Ltd. v. DCIT (2022) 195 ITD 346 / 217 TTJ 960 (Mum.)(Trib.)

S. 37(1) : Business expenditure-Referral fees to doctors-Violation of regulation 6.8.1(d) of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002-Not allowable as a deduction.

 

Held that referral fees paid to doctors who referred potential customers for availing stem cell banking services of assessee-company, acceptance of such referral fee by a medical practitioner was in clear violation of regulation 6.8.1(d) of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 and thus assessee-company was not eligible as a deduction. (AY.2015-16)