Supreme Court Upholds ICAI Rule Limiting Tax Audit Numbers By CA Per Year:

Supreme Court Upholds ICAI Rule Limiting Tax Audit Numbers By CA Per Year The Supreme Court of India has upheld the rule of the Institute of Chartered Accountants of India (ICAI) that prohibits Chartered Accountants from accepting more than the "specified number of Tax Audit Assignments" (currently upper limit fixed at 60) in a financial year. This judgment came, today, i.e., 17th May 2024, Friday. A bench of Justices BV Nagarathna and Augustine George Masih ruled that the rule (paragraph 6.0 of Chapter VI of Council Guidelines No. 1-CA(7)/02/2008 dt. 08/08/2008 and subsequent amendments) do not violate the fundamental right to practice the profession, as guaranteed by Article 19(1)(g) of the Constitution. The Court also determined that the clause would be deemed effective on April 1, 2024, and invalidated the disciplinary procedures begun against the members for violating the clause. "We quash the disciplinary proceedings initiated against the petitioners on the basis of the doctrine of legal uncertainty," the court stated. The Court also ruled that the ICAI will be free to increase the number of audits that a CA can do.