When a Chartered Accountant is performing a statutory audit, he is acting as an agency of the revenue department. Many times, we have seen that the dealers’/assessee’s assessment has been made on the basis of the auditors’ report. It is very well settled doctrine of the law that in any given case, one person can not be the solicitor for both the parties.
Now, when a CA is performing the statutory audit (which is presumed as acting on governments behalf); then how can he defend the assessee for his own cause and act?
There should be made provision so as to restrict the person who has conducted the audit, to represent the dealer/assessee in the assessment or other proceedings before the revenue department (it may be Income Tax Department or concerned VAT department).
That C.A should not be allowed to represent those dealers/assessees in the assessment proceedings of whose accounts he has done statutory audit under Income Tax Act or VAT Act. A different C.A or an advocate should be allowed to represent the assessee/dealer in such cases.
Members are requested to provide their unbiased views for healthy discussion.
Discussion initiated by:
Amit Bajaj Advocate, Jalandhar.
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