840/CBDT. - Income Tax - 840/CBDT

INSTRUCTION NO. 840/CBDT Dated : June 7, 1975 Section(s) Referred: 16(3) Statute: Wealth Tax Act, 1957 Attention is invited to Board's Instruction No. 373 dated the 24th January, 1972 issued from F. No. 328/92/71-WT and Instruction No. 720 dated the 22nd July, 1974 issued from F. No. 328/60/72-W.T. on the above subject. 2. In Instruction No. 720 it was stated that the outstanding fees of those advocates who only plead and do not act are not legally recoverable debts and are not assets within the meaning of Wealth-tax Act and accordingly the Board's Instruction No. 373, dated the 24th January, 1974 was modified to this extent. Not all the outstanding fees of a professional person would however represent debts of honour and it would be necessary to scrutinise the outstanding fees before accepting assessee's claims. The Board therefore desire that the Wealth-tax Officers should obtain from all professional persons a list of all outstanding fees, indicating in each case why a particular item is sought to be excluded from net wealth, so that the assessing officers may be able to decide as to what amounts are to be included in the net wealth. 3. This may please be brought to the notice of all the Wealth-tax Officers working in your charge for necessary action.