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2014 (1) TMI 1485 - AT - Income TaxDepreciation on books and periodicals - Held that:- The computation of depreciation on books and publications has to be made in accordance with the provisions of the Act using the correct WDV - As the assessee has produced complete and correct WDV, there is no reason to disbelieve calculation done by assessee in respect of depreciation - The issue has been restored for fresh adjudication. Payments made to Advocates - Held that:- The assessee is an Advocate and in the course of his profession assessee received advances from his clients and in turn hired Advocates for dealing the cases assigned to the assessee by his clients Decision in Sharma Kajaria & Co. Vs. DCIT [2012 (4) TMI 495 - ITAT, KOLKATA] followed Disallowance under section 40(a)(ia) can be made only in respect of an amount which is sought to be deducted under section 30 to 38 and not in respect of reimbursement simplicitor which is profit neutral and routed through the Profit & Loss Account - The amounts paid by assessee to the lawyers without deducting tax at source u/s. 194J were reimbursed by its clients - The amounts paid to the lawyers were never claimed as deduction - The issue has been restored for fresh adjudication. Addition on account of advances received in cash - Held that:- The assessee is an advocate who maintains cash system of accounting and has received advances from clients - Advances received from clients do not become his income unless assessee renders his professional services and bills for the same are raised - Merely that the assessee followed cash system of accounting does not mean that any sum received as advance for his future use becomes his income Decision in CIT Vs. Sandersons & Morgans [1968 (4) TMI 17 - CALCUTTA High Court] followed - When a solicitor receives money from his clients, he does not to do so a trading receipt but he receives the money of the principal in his capacity as an agent and that too in a fiduciary capacity - The money thus received does not have any profit making quality about it when received - It remains money received by a solicitor as "clients's money" for being employed in the clients cause The addition made by CIT(A) deleted - The solicitor remains liable to account for this money to his client Decided in favour of assessee.
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