Case Law Details
CIT Vs M/s Kap Scan & Diagnostic Centre Pvt. Ltd. (Punjab and Haryana High Court)
Allahabad High Court in Vishwanath Sharma’s case (supra) while considering the issue relating to commission paid to Government doctors for prescribing assessee’s medicines to patients held it to be contravening public policy and an inadmissible expenditure. However, no distinction can be made in respect of Government doctors and private doctors as has been canvassed by the learned counsel for the assessee.
Thus, the Commission paid to private doctors for referring patients for diagnosis could not be allowed as a business expenditure. The amount which can be allowed as business expenditure has to be legitimate and not unlawful and against public policy.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. This order shall dispose of ITA Nos. 445, 522, 533, 549 of 2006 as common questions of law are involved therein. For brevity, the facts are being extracted from ITA No. 445 of 2006.
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