The assessee is a company engaged in the business of \u2018extraction , collection , preservation and banking of stem cells \u2018 mainly from dental pulp . The assessee company has paid referral service fee to the medical practioners\u00a0\u00a0 for availing of the steam cell banking services . The\u00a0 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 \u00a0is forbidden by the legally enforceable code of conduct which renders it an expenses for a purpose that is \u2018prohibited 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 \u00a0( 2022) 442 ITR 1 (SC ) \u00a0\u00a0\u00a0\u00a0( ITA No. 7823\/Mum) 19 dt .20 -5 -2022 ( AY. 2015 -16 )<\/p>\n
\u00a0<\/strong><\/p>\n The assessee is a company engaged in the business of \u2018extraction , collection , preservation and banking of stem cells \u2018 mainly from dental pulp . The assessee company has paid referral service fee to the medical practioners\u00a0\u00a0 for availing of the steam cell banking services . The\u00a0 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 \u00a0is forbidden by the legally enforceable code of conduct which renders it an expenses for a purpose that is \u2018prohibited 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 \u00a0( 2022) 442 ITR 1 (SC ) \u00a0\u00a0\u00a0\u00a0( ITA No. 7823\/Mum) 19 dt .20 -5 -2022 ( AY. 2015 -16 )<\/p>\n \u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S.37(1): Business expenditure \u2013 Referral commission paid to doctors \u2013 Violation of the professional conduct- Not allowable as deduction. [ Indian Medical Council ( Professional Conduct Etiquette and Ethics ) Regulations 2002, R. 6.8. 1(d) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-27153","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-73X","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27153"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27153\/revisions"}],"predecessor-version":[{"id":33138,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27153\/revisions\/33138"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=27153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=27153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}