Clerkage paid to a senior advocate was excluded from professional income under the court rules and established practice.

Clerkage received by a senior advocate at 10% of professional fees was held not to form part of taxable professional income where the High Court rules recognised taxation of clerk's fee, required fee certificates for advocates but not for clerkage, and reflected an established practice of payment to clerical establishment. The court accepted the finding that the disputed amount was received only as clerkage, supported by material showing maintenance of such establishment, and rejected the argument that the rules governing senior advocates made the receipt unlawful or that a senior advocate's clerk could perform no legitimate function under the court rules.

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Issues: Whether clerkage received by a senior advocate at the rate of 10% of his professional fee formed part of his taxable professional income.

Analysis: The rules of the High Court recognised taxation of clerk's fee at 10% of the advocate's fee and required fee certificates from advocates, including senior advocates, while not requiring any certificate for clerk's fee. The court treated this as reflecting an established practice of payment of clerkage to clerical establishment. The assessee had maintained such establishment and the finding that the disputed amount was received only as clerkage was supported by material. The court further rejected the contention that the rules governing senior advocates made such receipt illegal or that the clerk of a senior advocate could perform no legitimate function under the relevant court rules.

Conclusion: Clerkage did not form part of the assessee's professional income and the question was answered in favour of the assessee.

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