Outstanding professional fees as assets: pleading-only advocates' unpaid fees are not treated as recoverable assets, others remain assessable. Outstanding professional fees are generally assets under section 2(e) of the Wealth-tax Act, but fees outstanding on the valuation date in respect of advocates who only plead and do not act are not legally recoverable and therefore are not assets. This exclusion covers pleading-only advocates on the original side of Calcutta and Bombay High Courts, non-advocate-on-record Supreme Court pleaders, and senior advocates briefed by juniors who do not act. Fees of other advocates and solicitors remain assets. Officers should apply the clarification to pending cases; closed cases need not be revised.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Outstanding professional fees as assets: pleading-only advocates' unpaid fees are not treated as recoverable assets, others remain assessable.
Outstanding professional fees are generally assets under section 2(e) of the Wealth-tax Act, but fees outstanding on the valuation date in respect of advocates who only plead and do not act are not legally recoverable and therefore are not assets. This exclusion covers pleading-only advocates on the original side of Calcutta and Bombay High Courts, non-advocate-on-record Supreme Court pleaders, and senior advocates briefed by juniors who do not act. Fees of other advocates and solicitors remain assets. Officers should apply the clarification to pending cases; closed cases need not be revised.
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