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TMI Blog2017 (12) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... play on appeal which was filed at this stage. Even otherwise in income tax proceedings the medical ethics will not be taken into consideration. At the most even if it is a professional misconduct it is to be dealt with by Medical Council of India. The income tax authority cannot decide the medical ethics when the original authority has partly allowed the expenses. In view of the above, the order of the Tribunal is quashed and set aside. The matter is remitted back to the Tribunal to decide the same afresh. - D.B. Income Tax Appeal No. 485 / 2008, D.B. Cross Objection Civil No. 48 / 2016 - - - Dated:- 18-7-2017 - HON'BLE MR. JUSTICE K.S. JHAVERI AND HON'BLE MR. JUSTICE INDERJEET SINGH For the Appellant : Mr. Sanjay Jhanwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but at the same time he failed to furnish the complete identification and addresses of the remaining persons so as to enable me to verify and ascertain the genuineness of the above payment and whether these persons were paying any taxes on the income received by them from the assessee. I therefore, disallow a sum of ₹ 5 Lacs (Rs. Five Lacs) out of claim of the assessee for an expenditure of ₹ 7,42,524/- under this head and add back it to his income. 4. Since the assessing officer has not allowed the expenses, they preferred an appeal and the CIT(A) has observed as under:- I have considered the facts of the case, I have gone through the details of the commission paid to the various persons. I found that it is a general p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined by AO. Section 37(1) provides that:- (i) any expenditure, (ii) not being in the nature of capital expenditure or (iii) personal expenses of the assessee (iv) expended wholly and exclusively for the purpose of the business or profession shall be allowed in computing the income chargeable under the head Profits and Gains of Business or Profession . 6. Counsel for the appellant contended that in view of the decision of the Delhi High Court in case of Max Hospital, Pitampura vs. Medical Council of India; ILR (2014) 1 Delhi 620 where expenses are required to be allowed to the hospital as business expenses and wherein the Delhi High Court has observed as under:- In the counter affidavit filed by the Respondents, it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, Etiquette and Ethics) Regulations, 2002 (hereinafter the 'Ethics Regulations') and has no jurisdiction to pass any order affecting rights/interests of any Hospital, therefore the MCI could not have passed and has not passed, any order against the petitioner which can be assailed before this Hon'ble Court in writ jurisdiction. (iv) That a simple observation made by the Ethics Committee of MCI about the state of affairs in the petitioner Hospital has harmed no legal right/interest of the petitioner for which a writ can be issued by this Hon'ble Court against the answering respondent. (v) That the petitioner contends that an adverse order has been passed by the MCI and that too without hearing the petitioner. Both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses were allowed for business loss as a result of seizure amount of heroine. 8. However, counsel for the respondent Mr. Jain contended that action of the respondent unethical and in view of the decision of Punjab and Haryana High Court in case of Commissioner of Income Tax vs. Kap Scan and Diagnostic Centre P. Ltd. reported in (2012) 344 ITR 476 and also the decision of Supreme Court in case of M/s Maddi Venkataraman and Co. (P) Ltd. vs. Commissioner of Income Tax reported in (1998) 229 ITR 534 wherein para 24 25 it has been held as under:- 24. In the instant case the assessee had indulged in transactions in violation of the provisions of Foreign Exchange (Regulation) Act. The assessee's plea is that unless it entered into suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's business. 9. We have heard counsel for both the sides. 10 Section 37 of the Income Tax Act reads as under:- 37. (1)Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee, laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head Profits and gains of business or profession . [Explanation.-For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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