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Case Law Details

Case Name : Tax Lawyers Association Lko. Throu General Secy. & Anr. Vs State Of U.P. Thru. Prin. Secy. Tax & Registration U.P. Lko. & Ors (Allahabad High Court)
Appeal Number : MISC. BENCH No. - 7116 of 2014
Date of Judgement/Order : 06/08/2014
Related Assessment Year :

CA Sandeep Kanoi

Allahabad High Court in the case of Tax Lawyers Association Lko. Vs. State Of U.P. as a Interim Measure held that no person whosoever, may be permitted to advertise in the Newspaper or any leaflet, inviting assesses for the purpose of filing of return or arguing before the authority under the VAT Act. Any person, who is not a registered advocate, shall not be permitted to appear before the Authority under the VAT Act. Judgment is a blow for Professionals like Chartered Accountant, Company Secretaries, Cost Accountants etc. who are working in the filed of UP VAT.

Brief Details of the case is as follows :-

Petitioners are aggrieved by the provisions contained in Rule 73 read with Rule 79(2)(f) of the U.P. Value Added Tax Rules 2008 (for short VAT Rules) which permits outsiders to practice in the field of Law before the VAT Authorities under the VAT Act. Learned Senior Counsel invited our attention towards Section 33 of the Advocates Act 1961 which provides that only Advocates are entitled to practice before any Court or authority. Learned Senior Counsel further submits that impugned Rule is ultra vires to the Constitution in view of the provision contained in the Advocates Act 1961 since under the garb of the impugned Rule, outsiders have been permitted to appear before the authorities under the VAT Act to practice in the field of Law. Attention has been invited by learned Senior Counsel to certain leaflets which seem to be advertisement by certain persons who are not registered Advocates inviting assesses with regard to filing of return on payment of Rs.400/- and odd.

Submission is that under the garb of said Rule, persons who are not skilled lawyer or have no knowledge in the field of Law, are appearing before the authority under the VAT Act, are spoiling academic atmosphere of the profession.

Argument advanced by learned Senior Counsel, as well as pleadings on record, require consideration.

Accordingly, writ petition is admitted.

Learned Chief Standing Counsel has accepted notice on behalf of respondents. Let notice be issued to Advocate General of the State of U.P. and counter affidavit be filed within a period of three weeks. Rejoinder affidavit may be filed within one week thereafter. In case counter affidavit is not filed, the Court may proceed further and pass order in the matter keeping in view the arguments advanced by learned Senior Counsel.

List immediately after four weeks for peremptory hearing.

In the meantime, as an interim measure, we direct the respondents that no person whosoever, may be permitted to advertise in the Newspaper or any leaflet, inviting assesses for the purpose of filing of return or arguing before the authority under the VAT Act. Any person, who is not a registered advocate, shall not be permitted to appear before the Authority under the VAT Act.

Submitted by – Advocate B.S.K.RAO

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0 Comments

  1. A Kumar says:

    Real Fact of Present World Advocates , CA, CS fighting with each other and on other side agents who are not qualified practising as Tax Consultants taking good amount of Work because they have no regulator no rules to follow and advertising giving pamphlets, which really downs the image/goodwill of Tre Profesionals,
    Whether in field of medical non doctors allowed to Practise????
    Then why in legal field ????

  2. BSKRAO says:

    Appearance before Income-Tax & VAT Authorities squarely fall within the meaning of practice of law for the genuine reason that all the procedure laid down in Civil Procedure Code is followed. If other than Advocates are allowed to practice Income-Tax Act & VAT Act, wrong doing of such persons at original stage may also result in gross injustice to the assesses at higher appeal stage.

  3. CA Munish Sood says:

    Interim order dated 6 August 2014 stand vacated insofar as the categories of (i) Chartered Accountants; (ii) Cost and Works Accountants; and (iii) Company Secretaries are concerned. The PDF link to the order containing the vacation dated 20.08.2014 is below

    https://taxguru.in/goods-and-service-tax/hc-order-allowing-ca-cma-cs-vat-authorities.html

    the vacation order passed by Chief Justice of Allahabad high court is detailed one and has touched each and every aspect of the dispute in a very logical manner.

  4. RiddhiSiddhi says:

    Mr. Kuttanji,

    Following are the answers to your some questions arises in your previous post:

    (1) In this blog relevancy of Advocate or non-Advocate is utmost important, because posting are very much biased on the basis of ones professional area..

    (2) This blog & poser in that are wide open for all person to read & comment on it…

    (3) Many more are holding C.A., C.S., CMA certificate course as additional only (ex. Adv. Harish Salveji (Sr. Advocate, Supreme Court of India)…

    How ever non-Advocates are not qualified for legal & proper interpretation of Statue, giving legal advice, representing, advocating, pleading on behalf of citizen of India & world at large.. As far as myself is concerned I am “Qualified” for that than you. (Just holding LL.B. degree dose not make any one ADVOCATE)…

    (4) Is this TAX GURU Blog really a “COURT OF LAW” as mentioned by you… pls. do not comment like this… If you are accountant than you can understand properly what “ACCOUNTING & AUDIT FRAUD”, “BRIBERY FRAUD” by accountants going on in India (recent arrest is example… timesofindia.indiatimes.com/india/Syndicate-Bank…/40319692.cms).

    (5) Mr. Kutten, & as far as my Intention is concerned, it is very much pious & clear… division between Advocates & non-Advocates are being done by non-Advocates only, which is being done & doing most systematically through undue influence in the Political & other system of governance… so please do the needful to prevent that first & concentrate on the practice area for which particular Act has been passed by the Parliament for certificate course

  5. RiddhiSiddhi says:

    Mr. Kuttanji,

    (1) In this blog relevancy of Advocate or non-Advocate is utmost important, because posting are very much biased on the basis of ones professional area..

    (2) This blog & poser in that are wide open for all person to read & comment on it…

    (3) Many more are holding C.A., C.S., CMA certificate course as additional only (ex. Adv. Harish Salveji (Sr. Advocate, Supreme Court of India)…

    How ever non-Advocates are not qualified for legal & proper interpretation of Statue, giving legal advice, representing, advocating, pleading on behalf of citizen of India & world at large.. As far as myself is concerned I am “Qualified” for that than you. (Just holding LL.B. degree dose not make any one ADVOCATE)…

    (4) Is this TAX GURU Blog really a “COURT OF LAW” as mentioned by you… pls. do not comment like this… If you are accountant than you can understand properly what “ACCOUNTING & AUDIT FRAUD”, “BRIBERY FRAUD” by accountants going on in India (recent arrest is example… timesofindia.indiatimes.com/india/Syndicate-Bank…/40319692.cms).

    (5) Mr. Kutten, & as far as my Intention is concerned, it is very much pious & cleare… division between Advocates & non-Advocates are being done by non-Advocates only, which is being done & doing most systematically through undue influence in the Political & other system of governance… so please do the needful to prevent that first & concentrate on the practice area for which particular Act has been passed by the Parliament for certificate course …

    \

  6. BSKRAO says:

    Whatever suggestion ICAI (Financials) place before the Govt., it seems to be in the interest of the Govt. But in reality, it results in complicating the law & goes in the financial interest of its members ONLY. This is how ICAI (Financials)keep the Govt. in DARK ROOM.

  7. Kuttan says:

    Dear Riddhi Siddhi sir

    Your question as to whether I am an advocate or non advocate is not relevant here at all. Please concentrate on the matter under debate and not the qualification of the parties there to. I do not find any visible qualification requirement for debate in TAX GURU.

    My question with respect to High court’s judgement was to Mr.BSK Rao sir. I think, he can understand the intention of my question to him. Regarding interpretation of law by non advocates, you may please note that a number of PROFFESSIONALS are holding LLB only as an additional degree. They can interpret the statutes and judgements more clearly than you sir. Therefore, sir please do not evaluate and mark the skills of others.

    With regard to intervention in the advocacy profession by others, the most viable measure you can avail is to fight in a court of law. Fighting in TAX GURU COURT OF LAW does not serve any purpose to you. So please go and get the verdict from the court. We have the faith in our legal system in spite of SOME cases of wrong doings from SOME advocates and judges.

    Dear Riddhi Siddhi sir,please do not try (intentionally)to create problems by dividing people into advocates and non advocates. Advocates and non advocates cannot function alone in vacuum.

  8. RiddhiSiddhi says:

    Mr. Kuttan,

    First of all, Are you an Advocate or non-Advocate???. If you are non-Advocate,than do not interpret Law & Legal Judgement yourself for proper understanding…. Don’t do incorrect/illegal interpretation of any statute or Judgement by non-Advocates/non-legal professionals (viz. accounting person etc.) any more. Please do the job of accounting for which you have been given certificate/diploma (not University Degree).

    Non-Legal Professionals; Pls. “DOOSARON KE PROFESSION MEIN NAAK MAT GHUSAO”…

    Now come to the point:

    Hon’ble Allahabad High Court has modified previous order in this case because they would have considered application by non-advocate association for impleadment.. if you do not know the Legal meaning (& not accounting meaning) of Impleadment..

    God bless you & your fraternity…

  9. BSKRAO says:

    ADVOCATE/ATTORNEY CAN PRACTICE BOTH LAW & PUBLIC ACCOUNTING-SUPREME COURT OF NEW JERSEY, UNITED STATES OF AMERICA

    The court must have had some kind of vision of the professional world converging in the future, for as early as 1964, it set rather interesting ground rules into place for the cross-employment restrictions of Legal and CPA professionals. In Opinion 23 (January 9, 1964), the court was asked: “May a member of the Bar of New Jersey engage in the practice of law in this State simultaneously with the practice of public accounting?” In response, the court’s opinion states:

    “… we find that the dual practices of law and accounting … by lawyers would not violate the Cannons of Professional Ethics. Nor does it appear to us that any other rules of our Supreme Court would be violated by such dual practices.”

  10. MANDEEP SINGH says:

    12. Punishment for contempt of court. ? (1) Save as otherwise expressly provided in this Act or in any other law, a contempt of court may be punished with simple imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with
    both:
    Provided that the accused may be discharged or the punishment awarded may be remitted on apology being made to the satisfaction of the court.
    Explanation. ? An apology shall not be rejected merely on the ground that it is qualified or conditional if the accused makes it bona fide.
    (2) Notwithstanding anything contained in any law for the time being in force, no court shall impose a sentence in excess of that specified in sub-section (1) for any contempt either in respect of itself or of a court subordinate to it.
    (3) Notwithstanding anything contained in this section, where a person is found guilty of a civil contempt, the court, if it considers that a fine will not meet the ends of justice and that a sentenceof imprisonment is necessary shall, instead of sentencing him to simple imprisonment, direct that he be detained in a civil prison for such period not exceeding six months as it may think fit.
    (4) Where the person found guilty of contempt of court in respect of any undertaking given to a court is a company, every person who, at the time the contempt was committed, was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the
    company, shall be deemed to be guilty of the contempt and the punishment may be enforced, with the leave of the court, by the detention in civil prison of each such person:
    Provided that nothing contained in this sub-section shall render any such person liable to such punishment if he proves that the contempt was committed without his knowledge or that he exercised all due diligence to prevent its commission.
    (5) Nothwithstanding anything contained in sub-section (4), where the contempt of court referred to therein has been committed by a company and it is proved that the contempt has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any
    director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contempt and the punishment may be enforced, with the leave of the court, by the detention in civil prison of such director, manager,
    secretary or other officer

  11. MANDEEP SINGH says:

    2. Definitions. Contempt of courts act 1971

    In this Act, unless the context otherwise requires,
    ?(a)? ?contempt of court? means civil contempt or criminal contempt;
    ?(b)? ?civil contempt? means wilful disobedience to any judgment, decree, direction, order,
    writ or other process of a court or wilful breach of an undertaking given to a court;
    (c)? ?criminal contempt? means the publication (whether by words, spoken or written, or by
    signs, or by visible representation, or otherwise) of any matter or the doing of any other act
    whatsoever which ?
    (i) scandalises or tends to scandalise, or lowers or tends to lower the authority of, any court;
    or
    (ii) prejudices, or interferes or tends to interfere with, the due course of any judicial
    proceeding; or
    (iii) interferes or tends to interfere with, or obstructs or tends to obstruct, the administration
    of justice in any other manner;
    (d) ?High Court? means the High Court for a State or a Union territory, and includes the court
    of the Judicial Commissioner in any Union territory.

  12. Kuttan says:

    Dear BSK Rao Sir

    On applications filed by the Institute for impleadment and vacation of stay, the Hon’ble Lucknow Bench of Allahbad High Court has modified its order dated 6th August, 2014 and consequently Chartered Accountants would continue to be permitted to appear before the Authority under the VAT Act in the State of U.P.

    Did ICAI influenced the High Court too?

  13. BSKRAO says:

    IF ICAI (FINANCIALS) SERIOUSLY & HONESTLY INTROSPECT ITSELF, IT SURELY WILL BE GUILTY OF ALL THE GOOD THAT IT WAS CAPABLE, BUT DID NOT DO. FOLLOWING ARE PROOF FOR EACH EVENT:-

    1. Wrong amendment carried out in 2nd Proviso to Section 44AB of Income-Tax Act in Finance Act, 2001

    2. Representation for concern of expanding the definition of accountant in DTC-2013 even though CAs are not disturbed.

    3. Mandatory upload of tax audit report without evaluating its utility for the purpose it was inserted in 1984.

    4. Linking Section 44AD of Income-Tax to Section 44AB of Income-Tax Act taking away the whole Income-tax practice from Non-CA Tax Professionals.

    5. Recent observation of Madras HC about functioning of ICAI(Financials)& latest decision in competition act….

    Our Central Govt. should revalue the wealth of ICAI (Financials), it will find that it stands first in the row of wealth compared to other professional bodies in India.

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