CM No. 12085/2015 (for condonation of delay in re-filing the appeal)
1. For the reasons stated in the application, the delay in re-filing the appeal is condoned.
2. The application is disposed of.
ITA No. 416/2015
3. The challenge in this appeal under Section 260-A of the Income 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 the end of the year, credit balances in the accounts, where the matters were complicated or settled, are transferred to the Profit & Loss Account. Where the cases are pending, the credit balances are carried forward to the next year as sundry creditors.