Fidelity Diagnostics P Ltd, Pune V. Deputy Commissioner of Income-Tax Cir 1(2), Pune

MA 11/PUN/2023

AI Insights

Fidelity Diagnostics P. Ltd. filed a Miscellaneous Application seeking modification of a previous Tribunal order which confirmed the disallowance of referral fees paid to doctors and nursing homes amounting to Rs.99,79,768 for the assessment year 2015-16. The assessee argued that the Tribunal had not considered the evidence provided to substantiate the genuineness of the expenditure. However, the Tribunal, referencing the Supreme Court's decision in Apex Laboratories (P.) Ltd. vs. DCIT and section 37(1) of the Income Tax Act, upheld the disallowance, leading to the dismissal of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137240 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 06-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 18-01-2023
• Other Referred Cases: Apex Laboratories (P.) Ltd. vs. DCIT, 442 ITR 1 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 2; 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER M.A. No.11/PUN/2023 (Arising out of ITA No.189/PUN/2021) िनधाᭅरण वषᭅ / Assessment Year: 2015-16 Fidelity Diagnostics P. Ltd., E-302, Marvel Diva, Magarpatta Road, Hadapsar, Pune- 411028. PAN : AABCF5899A Vs. DCIT, Circle-1(2), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This present Miscellaneous Application is filed by the assessee seeking modification of the order passed by this Tribunal in ITA No.189/PUN/2021 for the assessment year 2015-16 dated 26.09.2022 on the ground that the Tribunal had confirmed the addition without considering the evidence produced by the assessee in support of genuineness of expenditure incurred i.e. referral fees paid to doctors and nursing homes of Rs.99,79,768/-. 2. We heard the rival submissions and perused the averments made in the present Miscellaneous Petition. On mere perusal of the Assessee by : Shri Abhay Shastri Revenue by : Shri M. G. Jasnani Date of hearing : 07.07.2023 Date of pronouncement : 12.07.2023 MA No.11/PUN/2023 2 impugned order, it would be reveal that the disallowance of referral fees paid to doctors and nursing homes of Rs.99,79,768/- paid by the assessee was confirmed by the Tribunal following the law laid down by the Hon’ble Supreme Court in the case of Apex Laboratories (P.) Ltd. vs. DCIT, 442 ITR 1 (SC) and the plain provisions of Explanation 2 to section 37(1) of the Income Tax Act, 1961 (‘the Act’). The disallowance was confirmed not for the reasons of unproved expenditure. Thus, we do not find any merits in the Miscellaneous Petition filed by the assessee, hence dismissed. 3. In the result, the Miscellaneous Application filed by the assessee stands dismissed. Order pronounced on this 12 th day of July, 2023. Sd/- Sd/- (S. S. GODARA) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 12 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.