Commission paid for referring names of potential customers is allowable

PCIT Vs Vishal Engineering and Galvanizers (Gujarat High Court) It is a settled principle of law that commission paid to persons for referring names of customers is allowable u/s. 37 of the Act for introducing potential customers to the assessee falls within the ambit of service. The tribunal takes the view that the commission paid to the persons for referring the names of the customers, is allowable under Section­ 37 of the Act for the purpose of introducing potential customers to the assessee and the same would fall within the ambit of “Service”. We are in agreement with the view taken ...