2015 (7) TMI 785

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....come Tax Act, 1961 ("Act") is to an order dated 30th May 2014 passed by the Income Tax Appellate Tribunal ("ITAT") in ITA No. 360/Del/2013 for the Assessment Year ("AY") 2009-10. 4. The Assessee is proprietor of M/s. O.P. Khaitan and Company, a firm of Solicitors and Advocates. The Assessee follows the cash system of accounting since inception and this has been consistently accepted by the Department since 1990. The Assessee receives advances from its clients for various legal matters for meeting out of pocket payments towards expenses in travelling, preparation of cases, engaging lawyers, etc. Such advance receipts are kept in a separate ledger account in the name of the client where all the expenses are debited from time to time. At th....

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....ted it to Rs. 94,721 on the ground that no direct or indirect expenses were incurred for earning the exempt income. 7. In the consequent appeal by the Department, the ITAT noticed inter alia that the addition for the AY under consideration was similar to the ones made by the AO for AYs 2001-02 and 2003-04 and which had been deleted by the CIT (A) and concurred with by the ITAT. Nothing had been brought on record to persuade the ITAT to differ from the view taken by the ITAT in the Assessee's own case for those years. The ITAT also followed its earlier order dated 3rd February 2006 in ITA No.1765/Del/2002 (Jitender Sharma v. DCI)' and order dated 25th August 2006 in ITA No.3820/Del/2004 (M/s. Anand & Anand). The ITAT acknowledged that....