Deduction not allowable for Referral Fees to Doctors & Nursing Homes

Fidelity Diagnostics P. Ltd Vs DCIT (ITAT Pune)

The issue in the present appeal relates to allowability of referral fees paid to doctors and nursing home by the appellant company. The Assessing Officer was of the opinion that the payment of referral fees to doctors and nursing home would amount to violation of the provisions of Medical Council (Professional Conducts, Etiquettes and Ethics) Regulation Act, 2002. Therefore, squarely hit by the Explanation 1 to section 37 of the Act. We find that an identical issue was dealt by the Hon’ble Apex Court in

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