Outstanding professional fees as non-recoverable debts - require scrutiny and declaration for wealth-tax assessment by assessors. The Instruction states that outstanding fees of advocates who only plead and do not act are not legally recoverable debts and not assets for wealth-tax purposes, but not all outstanding fees are debts of honour and require scrutiny. Wealth-tax Officers must obtain from professional persons a list of outstanding fees with reasons for exclusion so assessing officers can decide what amounts to include in net wealth.
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 non-recoverable debts - require scrutiny and declaration for wealth-tax assessment by assessors.
The Instruction states that outstanding fees of advocates who only plead and do not act are not legally recoverable debts and not assets for wealth-tax purposes, but not all outstanding fees are debts of honour and require scrutiny. Wealth-tax Officers must obtain from professional persons a list of outstanding fees with reasons for exclusion so assessing officers can decide what amounts to include in net wealth.
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