In order to maintain the quality of tax audit to be conducted by our members. ICAI in the year 1989 imposed a limit on audits to be conducted by a practicing member in any financial year. At that time the limit was specified at 30. The process of fixation of ceiling on the number of tax audits conducted by a member got triggered from a letter dated 19th January, 1988 received by the ICAI from the Officer on Special duty, Central Board of Direct Taxes thereby requesting the ICAI to send comments on the suggestion that there should, be a restriction on the maximum number of audits conducted by a chartered accountant.
Considering the suggestion of the Department and also the fact that a human being can perform a limited amount of work qualitatively, this limit was imposed by ICAI. Thereafter, due to computerization of accounts and various other relevant factors the ICAI decided to enhance the limit to 45 audits per Chartered Accountant.
Extract from the reply of ICAI dated 29.01.2014 to CBDT in respect of Information Provided by Tax Advocate Shri B.S.K Rao and Shri Srikrishna to CBDT
To View Full text of the letter please Read the following post :-
Act of Non CAs to Approach CAs to get Tax Audit report signed for Audit not conducted by them is unethical – ICAI
Also Read – Tax Audit is exclusive domain of Chartered Accountants
Author Bio
In our country all forms submitted to any government depts or even private organisation, are just paper as a compliance measure and not for action. Persons submit their biodata for employment, getting awards, incentives etc with utter lies. still people get employment and no action taken against false claims. Nobody bothers. A small family get-together was organised in USA in a small school and the Head Master had asked for a declaration that liquor will not be served in this get together. The family head had signed this application. Eventhough the signatory had not served any liquor but Some persons who had come brought liquor on their own and they only drank, the family was penalised based upon the declaration submitted.
TAX AUDIT CLAUSE U/S 44AB INTRODUCED IN 1984 IN INCOME-TAX ACT.
Till date, in how many cases section wise wrong reported by Tax Auditor in Form No.3CD has been utilised by the Income-Tax Deptt. to conclude quality assessment. ICAI/CBDT should answer this question for retaining tax audit clause in Income-Tax Act/Direct Taxes Code. For the Asst. Year 2013-14, Tax Audit Report Form No.3CD has been uploaded to e-filing website of Income-Tax Deptt. CBDT need not provide section wise wrong claims reported in Tax Audit Report Form No.3CD to RTI Applicants, but it prayed before CBDT to extract such information to decide about its utility to the Income-Tax Deptt.