The assessee is a company engaged in the business of ‘extraction , collection , preservation and banking of stem cells ‘ mainly from dental pulp . The assessee company has paid referral service fee to the medical practioners   for availing of the steam cell banking services . The  Assessing Officer disallowed the said expenses , which was affirmed by the CIT(A ).On appeal the Appellate Tribunal referred the rule 6. 8. 1(d)) of the Indian Medical Council ( Professional Conduct Etiquette and Ethics ) Regulations 2002 and held that the acceptance of such a referral fee by a medical Practioner  is forbidden by the legally enforceable code of conduct which renders it an expenses for a purpose that is ‘prohibited by law , depriving the assessee company to claim a tax deduction in respect of the said expenditure . Order of CIT(A) is affirmed . Referred Apex Laboratories P. Ltd v. Dy .CIT  ( 2022) 442 ITR 1 (SC )     ( ITA No. 7823/Mum) 19 dt .20 -5 -2022 ( AY. 2015 -16 )

The assessee is a company engaged in the business of ‘extraction , collection , preservation and banking of stem cells ‘ mainly from dental pulp . The assessee company has paid referral service fee to the medical practioners   for availing of the steam cell banking services . The  Assessing Officer disallowed the said expenses , which was affirmed by the CIT(A ).On appeal the Appellate Tribunal referred the rule 6. 8. 1(d)) of the Indian Medical Council ( Professional Conduct Etiquette and Ethics ) Regulations 2002 and held that the acceptance of such a referral fee by a medical Practioner  is forbidden by the legally enforceable code of conduct which renders it an expenses for a purpose that is ‘prohibited by law , depriving the assessee company to claim a tax deduction in respect of the said expenditure . Order of CIT(A) is affirmed . Referred Apex Laboratories P. Ltd v. Dy .CIT  ( 2022) 442 ITR 1 (SC )     ( ITA No. 7823/Mum) 19 dt .20 -5 -2022 ( AY. 2015 -16 )