CA Manoj Fadnis

The President

The Institute of Chartered Accountants of India, New Delhi

Ref:  Kindly clarify the  doubts over appearance of Chartered Accountants before the Income Tax Authorities.

Dear Sir,

I would like to request you to issue a notification from the Institute regarding the appearance of Chartered Accountants before the income tax authorities. The income tax officials are threatening practicing CAs that they can’t appear before them, Recently Tax Bar Association, Rishikesh has issued a letter to Income Tax Authorities to ban chartered accountants from appearing before them. Earlier ,  Rajasthan Tax Bar Association have filed a petition before  Chief Commissioner of Income Tax (CCIT), Rajasthan and urged him  to not to allow anyone else then advocates Registered with state Bar Councils to appear in any proceeding before Assessing Authorities as well as Appellate Authorities of Income Tax.

In my opinion , all such representations are coming out of following two judgments of Madras High Court and Supreme court. i.e Bar Council of India Vs A.K.Balaji [SLP(Civil)No(s)17150-17154/2012] Dt.4.7.2012 (SC) & A.K.Balaji Vs Govt. of India (2012) 35 KLR 290 21.02.2012 (Madras HC)

The recent remarks of the Apex court in the case of Madras Bar Association Vs. Union of India on chartered accountants at the time of declaring NTT unconstitutional have also added fire in to it. Now Explanation to Section 288(2) of Income Tax Act on the lines of the definition of Chartered Accountant in the Companies Act is about to land. These amendments will take effect from 1st June, 2015. where following classes of persons are excluded from being called Accountant:

i.  Those persons who are not eligible for appointment as an Auditor in the case of a company as per Section 141(3) of the Companies Act, 2013

It will further add the fuel and it shall be a tool in the hands of authorities to harass us. Because of activeness of Social media, now Government is issuing clarifications on day to day basis, what’s a wrong with the ICAI to issue a clarificatory note over the issue? That note shall definitely support us to counter their misrepresentations.

We are aware that Section 288(1) of Income-tax Act provides qualification/eligibility of a person (Authorised Representative, ‘A.R.’, in short) to represent a case of an assessee before Income-tax authorities except where personal presence of the assessee is required. Clause (iv) of sub-section 2 of Section 288 provides that an “Accountant” can also be an A.R. In addition to representing the cases of tax payers before Income-tax Authorities, he is also authorized to prepare Audit Reports in accordance with the provisions under Section 44AB, Section 80-IA, Section 115JB, Section 92E etc. Explanation below sub-Section 2 provides the meaning of term “Accountant” which means a Chartered Accountant within the meaning of Chartered Accountants Act 1949 (38 of 1949) and includes in relation to any state, any person who by virtue of provisions of Section 226(2) of the Companies Act 1956 is entitled to be appointed to act as an Auditor of the companies registered in that State.

An Accountant is barred from appearing before Income-tax Authorities in cases If any person—

(a) who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has in relation to his right to practice as a legal practitioner or accountant, as the case may be;

(b) who is not a legal practitioner or an accountant, is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, the prescribed authority may direct that he shall thenceforth be disqualified to represent an assessee under sub-section (1).

So, unnecessary a pressure is built up on us and it is going to be problematic for the chartered accountants practicing in small cities. Another fact is that Tax Bar Associations are more or less dominated by the Advocates. It has also come to my notice that The Tax association which are having Chartered accountants as their member are being declared illegal by the bar councils.

I also request you to form a national policy to have association of Chartered Accountants with a centralized affiliation and to get the national recognition from the CBDT for the same. Some years ago Luck now has established its own Chartered accountant association for the Income Tax and High court directed them to delete the name of BAR from the name. If it is possible to use the present going on system of branches to serve as association, it shall not be a very good idea.  I fail to understand why ICAI is ignoring these developments because it is very clear that the survival of Chartered accountant is on the definition of accountant in section 288.

Thanking you,

Sincerely Your


(About the Author- Author was Member of ICAI- Regional Research Committee 2013-14 and ICAI- Committee For Direct Taxes 2011-12 and can be reached at email or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA)

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0 responses to “Doubts over appearance of Chartered Accountants before Income Tax Authorities”

  1. Manish says:

    This is better than Pro wrestling fight.

  2. Sangoram says:

    This is to Riddhi Siddhi, I would like to dissect your comments one by one.

    /Before commenting on noble Legal Profession/
    Are you talking of the same nobility where Lawyers find it suitable and not at all bad to downgrade females on international television?

    /According to you, CA Profession is the most competent to support the economic growth – “but by making accounting fraud like Satyam & so on… making window dressing of books of accounts to loot government exchequers”./

    Yes, we all know how the lawyers work, pay the judges and you will get your justice, In India law has become an absolute joke when the judges take bribes and lawyers take huge paydays to lose a case.

    /in many cases i have seen accountants certifying balance sheets with out verification of books of accounts, documents etc… even with out preparing books of accounts, with out knowing the clients details etc by charging enormous amounts straightly dealing with Bank Authorities, DIC authorities etc…./

    Is that so? how about Lawyers taking on cases knowing the person is guilty of whatever the crime is? Lawyer for Kasab seriously?

    /Unnecessarily issues certificate of proof of business to open current account in the banks…. this procedure is not mentioned in any Act, circular or notification at all… this all done by making bribes to bank personnel./

    Talking of bribes? you lot seriously?
    /in the era of computerization, there is no need of procedure of audit at all.. because accounting is being done by the Diwanjis of Businessman through accounting software which are so robotic to find mistakes done by the person/

    Do you even know what an audit is? or you like spouting rubbish for the sake of it? like lawyers usually do.

    On the whole i really think you are angry that Chartered Accountants have been given so much power. Need i remind you that CA’s are so important to an economy that the Chartered Accountants act was passed before the Constitution of India came into reckoning.

  3. BSKRAO says:

    Mr. Subramanya, CPA, USA
    CPA’s are appearing before IRS authorities in view of US Treasury Circular No.230
    BSKRAO, Tax Advocate, Apt.No.1405, 80E, Hancock, Street, Detroit, MI-48201
    MO. +91 9035089036

  4. RiddhiSiddhi says:

    for your kind information….

    1) People of our Nation as well as whole world knows the “true” capacity of Lawyers… who have fight & struggled for the cause of Independence of owns country… immense contribution in the “Initial Nation Building Process”…. social justice, welfare of people, farmers, Free Legal Aid to Needy….

    On the other hand “so called accountants” do not have any contribution in all these process… except looting money for unproductive work for the common people.. “Please know your own limitation first”… do not teach other to recognize limitation…. Accountants are poor looser guys…

    2) IT IS VERY MUCH TRUE THAT ” ADVOCATES/LAWYERS CAN’T BE COMPARED WITH ACCOUNTANTS BECAUSE ACCOUNTANTS DO NOT HAVE THAT MUCH CAPACITY EXCEPT WRITING BOOKS OF ACCOUNTS… since accountants are illegal practitioner of Legal Profession.. they are practicing legal profession illegally because accounting job do not have much scope in its own field.. for the sake of bread & butter they are illegally entering others profession… Now time is not so much far that accountants will be considered themselves practicing Software Development, Space Technology, Sports like cricket, Architects, medicine & engineering etc are their own practicing area… and thereafter they will treat themselves as lone expert practitioner of all the field on the earth… it is very funny to think about so…. hha..hha..hha.. pity accountants… becharoka job computer ne leliya ….therefor they are searching others job as their own!!!!!!!

    3) who started throwing stone first… please consider it in peace… you will find the answer your own…


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