CA Signs more than 490 Tax Audit Reports held guilty for Professional Misconduct

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Studycafe | Oct 26, 2021 | Views 208350

CA Signs more than 490 Tax Audit Reports held guilty for Professional Misconduct

CA Signs more than 490 Tax Audit Reports held guilty for Professional Misconduct

As per amended Chapter VI of Council General Guidelines, 2008 (Tax Audit Assignments under Section 44AB of the Income Tax Act, 1961), a member of the Institute in practice shall not accept, in a financial year, more than the specified number of tax audit assignments as prescribed under Section 44AB of the Income Tax Act, 1961. The specified number of tax audit assignments under Section 44AB of the Income Tax Act, 1961 is 60.

It is further provided in amended Chapter VI of Council General Guidelines, 2008 that in case of firm of Chartered Accountants in practice, specified number of tax audit assignments means 60 tax audit assignments per partner of the firm, in a financial year.

The Disciplinary Committee has held a Chartered Accountant, guilty of Professional Misconduct falling within the meaning of Clause (1) of Part II of Second Schedule to the aforesaid Act for Signing more than 490 Tax Audit Reports and consequently ordered for imposing a fine of Rs. 1000/- for each case of audit conducted in excess of the number stipulated in the Guidelines which aggregates to Rs. 4,90,000/- (Rupees Four Lakh Ninety Thousand) only which was payable within 3 months from the date of receipt of the said order.

The Disciplinary Committee further ordered that if the Respondent, fails to deposit the fine within the stipulated time i.e. 3 months, his name should be removed from the Register of Members for a period of 01(One) month. Since, the Respondent failed to deposit the imposed fine as stipulated, in pursuance of the aforesaid order of the Disciplinary Committee and in exercise of the powers conferred by sub-section (2) of Section 20 of the aforesaid Act, read with Regulation 18 of the Chartered Accountants Regulations, 1988, it is hereby notified that the name of said CA. Ravindra M C (Membership No. 019751), shall stand removed from the Register of Members for a period of 01(One) month with effect from 22nd October, 2021

Download the Complete Notification for the Name of the CA and More information.

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4 responses to “CA Signs more than 490 Tax Audit Reports held guilty for Professional Misconduct”

  1. Ravindra B V says:

    The fine of RS 1000/- per audit is so less and further non payment attracts only removal of name of just one month. Thus it is a precedent set by ICAI which encourages Chartered accountants to continue this. Now every other Chartered Accountant can follow this. If regulators view this so lineantly how can you expect a good audit report

  2. SURENDRA says:

    Punishment by ICAI is very minimal. It will only encourage the other members to follow the wrong.

  3. N B K GANDHI says:

    So the delinquent member income when he serves the suspended period is Rs.4,90,000/-. So the auditor who signed 490 tax audit is worth awarding PADMASRI as his knife has cutting edge on both sides.

  4. Nand kishor says:

    There might be much more CAs who might have signed TAR more than the prescribed limits for the purpose. But the moot question is the professional descipline . It is expected from all CAs and not from CAs in muffosil areas where the opportunities were limited. It is a fact that no CA firm has pointed out the generation of unaccounted income by big companies whereas every body knows that a part of income is siphoned off and used for political and alike purposes. There is a need for the profession regarding thinking of its credibility..which is eradicating in public eyes ….no doubt morality and credibility is no where either in politics, economics or any field of life…

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