ICAI initiative on order dated 20th August, 2014 pronounced by a Bench of Income Tax Appellate Tribunal, Mumbai

Members are aware of the general remarks against ICAI made by Hon ‘ble ITAT Mumbai Bench in respect of its order dated 20th August, 2014 wherein the tax advice given by a member of the Institute had been dealt with.

The above matter was considered by the Council at its meeting held on 15th September, 2014.

The Council unanimously felt that the comments made by the Hon’ble Bench on the profession and functions of the ICAI were neither warranted as no facts relating to the profession were before the Hon’ble ITAT nor was any opportunity given to ICAI in the said matter. The Council felt concerned that based on the opinion given by one of the members, general comments have been made in respect of the standards of the entire profession. The Council is of the view that the sweeping observations made by ITAT in the order about the Institute and the profession of Chartered Accountancy in a matter relating to a particular tax payer, are out of context.

The Council is conscious of its responsibility to regulate the conduct of its members. Whenever the Institute come across with any lapse(s) with regard to the conduct of any member, the same is appropriately dealt with under the disciplinary mechanism of the Chartered Accountants Act, 1949 and the Rules framed.

The Council reiterates its respect for the judicial system in the country including the Income Tax Appellate Tribunals. However, the Council has decided to take up the instant matter with appropriate/respective authorities, for expunging the aforesaid remarks made against the profession.

The outcome of the steps taken by the Council will be apprised to the members from time to time.

Read ITAT Judgment –Severe fall in standards of CA profession – ITAT

Severe fall in standards of CA profession – ITAT


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  1. CA B B SHETTY says:

    Earlier it was ITAT now it is C & AG and a day is not far where in every forum public will start disrespecting CA and their profession. Already people say CA stands for “CHALU ADMI”. I as a member of Housing Society gone through the Audit Report of Bharat Rugani & Co who just an incorrect and manipulated Balance Sheet and on writing for details, he did not respond. This shows the attitude of responsible Auditor. In my view 90% of society dispute is due to casual and irresponsible attitude of CAs who do the audit but also the CA body a regulator wherein the elected members are using the forum of our Institute to make more business at institute cost (as their TA etc is borne by Institute) and least bothered about improving and regulating these sort of irresponsible Auditor

  2. CA m m chauhan says:

    As per my opinion both things are desirable. 1 icai should take up matter at appropriate level as ca profession cannot be blamed due to one person’s opinion/mistake. 2 if CA are negligent and not providing service as per expected standard icai can take action against member but no comments for ca profession is require.however suggestions are always welcomed.

  3. Sneha says:

    There is no question of debate w.r.t. time frame for filing appeals and in which circumstances a rectification can be filed. It is a disgrace that even articled trainees who have not even qualified are having a hearty laugh over the hieghts of lack of ability to interpret law by a Qualified CA. Chartered stands for expert. One cannot take shelter by pointing out issues like corruption and other defects in the system. If the title Chartered has been conferred on a qualified accountant he is expected not to make such disgraceful blunders in interpreting law. Instead of giving a stern reply to Hon’ble ITAT Mumbai Bench, ICAI must as a prioroty take disciplinary action against the concerned CA. He must also be made to indemnify the assessee

  4. CA Surendra Rakhecha says:

    Make a survey to assure whether clients are happy with their Chartered Accountants or not. The answer would be known perfectly. Every day clients make several calls to a practising CA who advise him without charging which means TRUE VALUE ADDITION in services. No other profession can match CA profession in this regard. Further, it is also true that people ask their friends to suggest for a Good Lawyer, Good Doctor, Good Teacher and so on. What does it mean? Doesn’t it show every lawyer, doctor or teacher is not parallel to his peers?

  5. B.S.K.RAO says:

    The Council is conscious of its responsibility to regulate the conduct of its members. Whenever the Institute come across with any lapse(s) with regard to the conduct of any member, the same is appropriately dealt with under the disciplinary mechanism of the Chartered Accountants Act, 1949 and the Rules framed.

    Who is going to bell the CAT for wrongful action of ICAI Council ?

  6. MANDEEP SINGH says:

    Given legal advice is a area of Advocates. If wrong legal advice given by Chartered accountant, it doesn’t matter because they are not law professionals. They are only accountancy professionals & “Practice of law” is complex matter, everybody shouldn’t be allowed for given legal advice. Government need to delete representative clause u/s 288(2) of income tax. Due to non expertise in field of law, any wrong advice given by authorized representative causes unnecessary financial loss to assessees.
    Legal advice regarding income tax should be limited to only Advocates. who are deals in taxation matters.

  7. M V S N SHARMA says:

    Fraudulent people are there in every profession/department/govt. offices. Because of one person’s wrong doing the comments by the member of ITAT on the entire professional community are unwarranted. ICAI should take up the issue and protest at the appropriate forum.

  8. Ashish Gupta says:

    With due respect to hon’ble bench of ITAT, Criticizing the whole profession just because of opinion given by a chartered accountants in tax matter is not acceptable at all. As everybody knows that how complex the tax structure in India is. Even most of the decision given by Hon’ble ITAT/ HighCourt sometimes even Hon’ble supreme court are usually impugned. But blaming the entire body of profession (whole ICAI) will not be prudent. We all are aware that the disciplinary committee of ICAI is regularly taking action on members against any genuine complain to maintain the highest level of integrity.

  9. rajiv says:

    For any profession/job, it is just about managing the Law by all means, which is mostly outdated and neither serving the desired purpose nor acting tough on corruption and incompetence in all professions whose only objective and goal is super fast track to making buck. ethics and character are only on paper and good to listen in speeches of our netas, when it comes to implementation all are falling flat. all know it is not feasible to do business in current competition and low margins by following all the applicable laws of the land. Lapses are inevitable and hence the need for managing professional brokers in all professions by
    corrupt and unethical practices. socieity should show examples of people earned huge money by following all laws of the land and by honest means.
    the need is mother of calibre of kausalya to produce maryada purushottam and simplicity personified lord sri rama or jeeja mata to produce great chatrapthi shivaji maharaj,but, for them income tax laws were non-existant.

  10. CA Ashok Aggarwal says:

    Hi Readers,

    ITAT has made mockery of our pioneer noble profession by bundling all the CAs in one basket which is wrong. In particular case the learned member could file complaint before ICAI rather reporting this matter to media.

    Ashok Aggarwal

  11. CMA Himadri says:

    It seems that the council member of ICAI-CA were in haste to take decision against ITAT (Mum) even before reading the full order by lines (this may be for securing their own political carrier as CCMs). The ITAT observed that the assessee has consulted with several CAs at several points of time. Therefore for the main point of the disputes, he relied upon the judgement of particular one CA/CA Firm only is not believable (assuming the assessee is a prudent man as he used to get a very handsome package of remuneration during the period of disputes). Therefore, it may be assumed the all (or at least the majority) of the CAs to whom the assessee consulted with, have given him the same suggestion. This was the case which upsets the ITAT to make those comments.

    But what is more surprising, instead of taking it as a constructive criticism, ICAI plans for counter action. These shows how even a premier statutory institute has no courage to consider criticism and how much impatient the council members are.

  12. B.S.K.RAO says:


    (1) Lot of irregularity, mischief, corrupt & fraudulent practice of ICAI (Financials) & its members has come to light recently. This is all because of supremacy over audit given to ICAI in all Indian statute. Hence, it is prayed to amend Section 18(5) of The Chartered Accountants Act, 1949, so that accounts of ICAI (Financials) should be audited by The Comptroller and Auditor General (CAG) of India under Article 149 of Indian Constitution. This is in the interest of public at large & need of the hour.

    (2) Similar amendment should be brought in Section 18(5) of Cost and Works Accountants Act, 1959, Section 18(5) of The Company Secretaries Act, 1980 & Section 12(2) of Advocates Act, 1961 (Bar Council). To sum-up all the bodies passed by Acts of Parliaments should have their accounts audited by The Comptroller and Auditor General (CAG) of India under Article 149 of Indian Constitution. (Supreme authority for Audit under Article 148 of Indian Constitution).


  13. VENKATESH.U.D, says:

    Monopolistic era of Chartered Accountants in Indian Tax Law Practice will come to end shortly. ICAI (Financials) should change its attitude & approach and meaningfully work under transparency. (It should avoid approaching bureaucrats & Ministers for seeking favours against gratification). Then only it can maintain the statusquo. Beware, RTI is in force, ICAI (Financials) can not change DOG TO DONKEY.

  14. CA.B.B.SHETTY says:

    Let us open our eyes. Instead of shooting the messanger, let us brow beat the CA’s who spoil the image of Institute and other professional brothers. Recent my experience with a CA firm at Mumbai is very bad to the profession. CA has signed the balance sheet prepared by the society and on asking whether you have verified the Interest application, he replied that it is not his work and for the fee paid it is not possible and he was telling that he is signing more than one thousand society audit reports. See the state of affaris of our profession prevailing now.

    Today it is tribunal and just wait even highter ups also will start this as CA’s are negligently performing the job just to make money

  15. CA Sarvesh Kumar says:

    Point raised is valid and things should not be generalized.Corruption is rooted in judiciary as well as in the tax authorities ,we could not remark whole system as corrupt. Besides there is a system in ICAI to handle with this and will be taken care of ..

  16. Girish says:

    On reading the ITAT judgement, some facts seems to be considered by ICAI seriously. See whether CPE seminars are actually benefitial for CA’s. Many meetings are intended for rejuvenation of members in tourist locations and how many hours actually used for training. Better method to acquire knowledge is self study of amended laws and journals than attending such meetings. Second one is importance of articleship. Many students are opting for dummy articleship and attending private tuitions and coaching centres for quick passing of examinations. Third one is mushrooming of coaching centres for CA course across India. This is only a money making business now and not doing any good for the profession as a whole. Self study is the method which is intended by ICAI, for which students are not willing now a days. See how many eminent CA’s in India attended private tuitions or coaching centres? Some of them would have attended coaching from ICAI branches, but majority done the studies themselves. ICAI should defenitely take some steps to improve the quality of students so that the dignity of the profession do not come down in future which will affect even the job prospects of CA’s in coming days.

  17. Premchand kadmawala says:

    It is serious remark and need strong rebuttal.
    Is a ITIA member or IT commissioner or any one from the judiciary take wrong action or accepts bribe it mean whole judiciary or ITIA a corrupt?The said honourable ITIA member be asked?

  18. anup says:

    Please make application befor ethe ITAT for modification in its order and also file complaint agasint the ITAT Members that they had exceeded their juridiction and also pass a resolution to remove such memebrs from the ITAT.

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