https://www.taxtmi.com/caselaws?id=449963 Calcutta HC held that a solicitor firm receiving advances from clients for out-of-pocket expenses was not required to show these as trading receipts. The court ruled that solicitors receive client money in fiduciary capacity as agents, not as income. Since the money belongs to clients and payments are made on their behalf, the receipt effect is neutralized by corresponding payments. The AO's addition of reimbursed amounts to taxable income was incorrect. Section 145 provisions regarding manner of maintaining books were inapplicable as no adverse conditions existed. The substantial question of law was decided favoring the assessee against revenue. en-us Wed, 07 Feb 2024 00:00:00 +0530 Wed, 09 Jul 2025 17:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449963 Calcutta HC held that a solicitor firm receiving advances from clients for out-of-pocket expenses was not required to show these as trading receipts. The court ruled that solicitors receive client money in fiduciary capacity as agents, not as income. Since the money belongs to clients and payments are made on their behalf, the receipt effect is neutralized by corresponding payments. The AO's addition of reimbursed amounts to taxable income was incorrect. Section 145 provisions regarding manner of maintaining books were inapplicable as no adverse conditions existed. The substantial question of law was decided favoring the assessee against revenue. Case-Laws Income Tax Wed, 07 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449963