Given the manner and functioning of the lawyers and law firms, it is correct that the categorization of a receipt can take place only at the time of appropriation i.e. in case of fees only when the matter is over or as when the Assessee decides on the quantum of fees. This will not be the entire advance received as at the time it is received it does not bear any particular characterization for the purposes of treating it as income. Hence mere receipt of advance can not be treated as income in the year of receipt of amount although cash system of accounting is being followed by the advocate.

[Om Parkesh Khaitan ITAT Delhi 21-07-2015 ITA 416/2015]