License Fees paid to Consultant / Doctors abroad under Business Arrangement is Allowable as Deduction

DCIT Vs M/s. Teleradiology Solutions P. Ltd. (ITAT Bangalore)

The learned Counsel for the assessee has contended that it is a business arrangement between the assessee and the consultants/doctors. If the assessee does not pay the licence fee on behalf of the doctors, he has to compensate the doctors by making additional payment for the services. The arrangement made by the appellant and the consultant/doctors could not be examined by the AO keeping aside the business need. Therefore, the CIT(A) has rightly allowed the claim of the assessee.

Havi

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