An advocate is a partner in a legal firm which provides consultancy to foreign clients in india. The partner has income consisting of salary from firm & share of profit from firm of nearby 1 Crore. The partner is maintaining one office at house and incurred expenditure on salary, entertainment, electricity, telephone, professional charges etc. of Rs. 4 lacs. I want to ask whether this expenditure to the tune of Rs. 4 lacs can be adjusted from the share of profit earned. Please advice.............i need urgent help
3 Replies
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 09 August 2008
The said expenditure does not meet the requirement of 37(1). The onus of proving that they do is on the assessee.
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 10 August 2008
Is The Office Of Advocate His Personal Or Of Firm??
If Its Firm's Office Then That Expenses Must Be Debited To P&L of The Firm
If It is His Personal Then It should be deducted frm the income he earns frm that office.
bishan singh negi
(service)
(87 Points)
Replied 11 August 2008
| Originally posted by :nitin wadhwani | ||
| " |
Is The Office Of Advocate His Personal Or Of Firm?? the expenduture cannot be adjusted against salary received from firm and the share of profit from partner ship firm is exempted.
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