To,

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

CA AMRESH VASHISHT, Meerut

(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 amresh_vashisht@yahoo.com 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:

    @Raviji
    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…

    thanking!!!

  5. Ravi says:

    @RiddhiSiddhiji

    I do agree that those kind of people are there.
    No Profession has 100% ethical and perfect individuals.
    I don’t like to mention dark sides of esteemed Lawyers, people themselves know the same.
    People also know what is the capacity of a CA.
    We all need to know our limitations and work towards building a strong nation, rather than throwing stones at each other.

    Thanks

  6. S N PRASAD says:

    CA Statute has not given any provision to CA`s to representat their clients. Since CA`s are not accountable for mis-representation under the CA Statute. CA institute can take action only on professional mis-conduct like mis-Certifications. Hence the provisionals under All Indian Taxation Laws which has provided a chance to represent the assessees are now under REVIEW OF THE APEX COURTS.

    Everybody born on this earth is a human-being. Every human-being is leading their day to day life and the destiny is decided only by their attitute.

    If any class of professional is left un-organised nor regulated proverly it amounts to Social Injustice by giving chance to serve the public and mis-lead them.

    I never say all CHARTERED ACCOUNTANTS are good or bad. Every human-being will be not like another. We are only concerned about the So called NOBLE PROFESSIONALS who`s names were reflected in the CAG report submitted before the parliament has created a havoc loss of around 2500 Crores to the revenue that too only in the sample cases of around 1000 numbers. If all the cases of 44AB were put to scruitiny and thorough verification what may be the result and figures ???.

    Dear friends and commentors you should also please take so be these aspects in to consideration before using abuse words.

    BECAUSE TAXES ARE THE SOCIAL FEES AND ANY HARM CAUSED TO IT IS A CRIME.

    ALL PUT TOGETHER A SOLID SOLUTION SHOULD BE SUGGESTED INSTEAD OF MISLEADING THE ISSUE BECAUSE IN THE LARGER INTEREST OF QUESTION OF NATION`S REVENUE.

  7. MURALIDHARA S says:

    GOD ONLY HAS TO SAVE THE SMALL TAX-PAYERS & RELATED TAX PROFESSIONALS IN THIS SITUATION.

    THE AUTHOUR has raised his concern ONLY ABOUT THE CHARTERED ACCOUNTANTS AND NOT THE REPURCUSSION ON THE OTHER RELATED PROFESSIONALS.

    What about the Sales Tax & and Income Tax Practitioners who are contributing a lot to the service of the direct SMALL and MEDIUM and SALARY CLASS assessees. Do we become UN-EMPLOYED. If so how the assessees will be served in by and large numbers.

    MAJORITY OF THE AUDIT & STATEMENT PREPARATION WORK OF SMALL & MEDIUM CLASS OF ASSESSES WERE COMPLETELY BY RELATED PROFESSIONALS i.e., TAX PRACTITIONERS WHO MONITOR THE ACCOUNTS of the assessees.

    Majority of the Chartered Accountants feel they are born with a silver-spoon SINCE THEY GET READY FOOD FOR SIZABLE FEES from OTHER RELATED TAX PROFESSIONALS because of MANDATORY 44AB & CERTIFICATIONS.

    Majority of the Advocates community don`t find the word ` CASE LOST` in the DICTIONERY, Since they always hope to `WIN` by approaching higher courts at the cost of cleint.

    Leave the issue of the Tax Advocates & Chartered Accountants, since they serve only the BIG CLIENTS but to the SURPRISE THEY FEEL INSECURED ???.

  8. sreedhara parthasarathy says:

    On date, appearance clause under all Indian taxation statute has been subject to review of apex court. If such appearance clause still retained in statute books of Indian taxation laws, situation may arise that orders of the assessing authorities passed against the representations of other than Advocates will become in-fructuous, bad in law, null & void. Further, such orders cannot be enforced and / or appealed.

    In the result, Only CAs will conduct Tax Audit and only Advocates will plead and act before the Authorities. Can anyone imagine the ILL EFFECT of this situation to Government revenue and troubling the assessees, resulting in creating a havoc to approach for more than one Tax Professional to give compliance. Furnishing Certificate & Reports in Income-Tax Act require both interpretation of facts & law. Interpretation of facts is not a tough job, but interpretation of law is a tough job.

    Due to latest court verdicts on practice of law, India is badly in need of Unique Tax Professionals Law covering all five class of tax law professionals of India Viz.,Tax Advocates, Cost & Management Accountants, Company Secretaries, Chartered Accountants and Income-Tax Practitioners, who wants to practice tax law in India.

    There is no other go except our esteemed Central Govt. to come out with subordinate legislation; introduce Tax Professionals Bill covering all five class of tax law professionals of India. Such Bill should be introduced with “Preamble” stating that “other than Advocates are also practicing exclusively in the line of tax laws in India, in order to protect them & also in the interest of Govt. revenue, this Tax Professionals Bill has been introduced”. Then such Tax Professionals Law cannot be struck down in view of the above court verdicts.

    On date ample tax compliance work is there, but there is no such required number of Tax Professionals to support voluntary compliance in Indian taxation laws. Further, “More persons in the line of tax practice more revenue to the Government”

  9. BSKRAO says:

    There is no doubt at all, Apex Court has clearly up held verdict of Madras HC in A.K.Balaji case in its interim order that in order to practice law in India, person should be enrolled under Advocates Act & kept pending the view of Madras HC about foreign lawyers visiting India to advice laws of their country.

  10. MANDEEP SINGH says:

    Sir, many CA’s claims that section 33 of Advocates give the right to other persons for ” Practice of law”. Yes sir section 33 have exceptions for ” Practice of law” for those pleaders who were not able to register themselves as an advocate at the time enactment of advocate act or for those who were register pleaders before chapter IV of advocates act come in existence.
    NOW QUESTION ARISES, WHETHER ANY ACT PERMITS NON-ADVOCATES for ” Practice of law” as exception given under section 33 of Advocate Act 1961.
    Ans:- As per my opinion No act permits any person for ” Practice of law” except appearance under various Acts.

    TO CLAIM EXCEPTION OF section 33, There should be clearly write in acts that SUCH AND SUCH PERSONS ARE AUTHORIZED FOR ” PRACTICE OF LAW”.

  11. MANDEEP SINGH says:

    Mr.gavin c dsouza & Sh. Krishana ji,
    You have made back door entry in the “Practice of law” trough Income tax & other tax acts, which is not your field, but now you blaming to the Advocates that they are don’t know how to do “Practice of law”. I am surprised to hear that whether Advocates have so many worse days, because now” Accountants” are thinking to teach Advocates how to do ” Practice of law”.

    Word ” Bar” is derived out from Advocate Act 1961.
    (1) BAR COUNCIL OF INDIA a is national body of Advocates
    (2) STATE BAR COUNCIL is a state level body of Advocates
    (3) BAR ASSOCIATIONS are lower body of Advocates to get effectively welfare schemes from above parental bodies. sir you can study Advocate act to know about word “BAR” & other option you can see the meaning of “BAR” from general dictionary.

  12. BSKRAO says:

    Chartered Accountants should appear before income-Tax authorities against summons issued U/s 131 & not on own motion by the strength of power of attorney. Power of attorney to practice law (vakalatnama) can only be given to Advocates enrolled with Bar Council

  13. BSKRAO says:

    Advocates are licensed to practice all Indian laws. Income-Tax Practitioners are specially licensed to practice within the frame work of Income-Tax Act. But, who issued license to Chartered Accountants to practice Income-Tax law in India to treat CAs as Tax Professionals in e- filing portal of Income-Tax Deptt. CBDT should answer this question – RTI is also pending before CBDT in the above matter.

    BSKRAO, Detroit, USA. Dt.10.05.2015 12.40 AM

  14. BSKRAO says:

    CBDT/Finance Ministry should answer my question “How CAs are accountable to Income-Tax Deptt. in order to retain appearance clause for Accountant in the statute book of Income-Tax Act”.

  15. RiddhiSiddhi says:

    @Ravi
    Mr. Ravi ji,
    Before commenting on noble Legal Profession or other noble profession, first of all you should look in to your home (profession) for the darkness…
    (1) 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”.
    (2) 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 by dealing with Bank Authorities, DIC authorities etc….
    (3) Unnecessarily doing tax audits of assessees who are not liable to Tax audits as per the Acts by fraudulent ways..
    (4) 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.
    (5) 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… therefore verification of transaction is being done by the assessee/diwnajis himself/herself… therefore in the interest of the citizen of country – cost of audit must be saved by doing away the procedures of audit at some extent…

    There are numerous points to pin-point on how the job of accounting work & other procedure is being done…

    So it is well advised to the accountant friends that do the job of accounting for which you have been created as a subsidiary to the Legal Profession… because in any democratic country supreme is the Constitution, Legislature & Judiciary for the justice of the common people..
    Thank you!!!

  16. RiddhiSiddhi says:

    @Ravi
    Mr. Ravi ji,
    Before commenting on noble Legal Profession or other noble profession, first of all you should look in to your home (profession) for the darkness…
    (1) 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”.
    (2) 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….
    (3) Unnecessarily doing tax audits of assessees who are not liable to Tax audits as per the Acts by fraudulent ways..
    (4) 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.
    (5) 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… therefore verification of transaction is being done by the assessee/diwnajis himself/herself… therefore in the interest of the citizen of country – cost of audit must be saved by doing away the procedures of audit at some extent…

    there are numerous points to pin-point on how the job of accounting work & other procedure is being done…

    So it is well advised to the accountant friends that do the job of accounting for which you have been created as a subsidiary to the Legal Profession… because in any democratic country supreme is the Constitution, Legislature & Judiciary for the justice of the common people..
    thank you!!!

  17. vswami says:

    Rider
    One’s own longstanding conviction,more based on common sense, with emphasis on value base,, in pith and substance, in words borrowed from a renowned law legend, N A Palkhivala is this: There could be no excellence expected to be accomplished in any subject such as law, or accounting,without the individual sincerely aiming at the most valued “Personal Excellence” and striving to reach anywhere at least close to it.

  18. vswami says:

    Frankly speaking (to share own thoughts in the larger and long term/enduring interests of the members of the CA fraternity) : Given the nature given so called, not uncommon, human trait of ‘self-centric approach’,in any such matter inherently controversial, there could be any amount of assertions or denials , or a mixture of both, is not but unavoidable. Especially that could only be so,if and when obliged to facing any confrontation of this kind/magnitude, threatening the very survival of not only the individual professional -a fresher or with experience, but the entire profession itself. Every such predicament or difficult situation can be crossed/tided over, provided the wisdom in the age-old belief or faith or motto namely, “survival of the fittest” is always kept in sharp focus. Whether fit , fitter or fittest, or not, is , of course,a matter left to be apprised and decided wholly but not exclusively by the ‘serviced’ – the payer for / recipient of, the service; but a host of them having vested interests, directly or otherwise.

    Over to the rest, wishing them to give more useful thoughts, with the aim of betterment of the presently prevailing seemingly-not-so-healthy state of affairs from the viewpoint of the so- far -ever – eluding ‘common good’.

    No need to add, – the serviced /paymasters are looking for the desired change in the scenario – sooner the better.

  19. BSKRAO says:

    CA AUTHORISED TO WORK ON FINANCIAL ACCOUNTS, CMA AUTHORISED TO WORK ON COST ACCOUNTS, FINANCIAL ACCOUNTS & MANAGEMENT ACCOUNTS, CS AUTHORISED TO WORK ON COMPANY MANAGEMENT & ADVOCATES AUTHORISED TO WORK ON ALL INDIAN LAWS. THEREFORE, PRACTICE OF ALL INDIAN TAX LAWS IS ADVOCATES DOMAIN. CAS SHOULD NOT MONOPOLIZE TAX PRACTICE BY WAY OF INSERTING CERTIFICATES. THIS APPROACH OF CAS STRONGLY OPPOSED BY ALL NON-CA TAX PROFESSIONALS OF INDIA. UNLESS ICAI CHANGE ITS ATTITUDE & APPROACH, WE NON-CA TAX PROFESSIONALS WILL NOT ALLOW CAS TO PRACTICE TAX LAW IN INDIA

  20. BSKRAO says:

    Only solution for above problem is that our Central Govt. should come out with Tax Practitioners Bill in the lines of US Treasury Circular No.230 prevailing in USA or Tax Agent Service Act of Australia in India, covering all five class of Tax Professionals. Further, monopoly of CAs in Tax Practice should end, then only Tax Advocates will support this issue.

  21. Ravi says:

    SO called esteemed Advocates think Accounts is a new concept.
    This only proves their depth of “intellect”.
    CA Profession is the most competent to support the economic growth.
    Advocates are more interested to loot their clients.

    ICAI should take immediate action in this regard.

    Thanks

  22. Ravi says:

    I really appreciate the article by our professional colleague.
    The Advocates think they can get anything done by playing cheap politics.
    First let them learn to adopt ethics in their Practice and then let them speak about our esteemed CA Profession.
    CA Professionals are the most competent to handle tax matters.
    ICAI should immediately consult the Central Government and take necessary action in this regard.

    Thanks

  23. MANDEEP SINGH says:

    Ca Nishant Maitin ji,
    2+2=4 is a fact & when we are argue regarding penalty u/s 271(1) c & related to other tax matters with the support of legal judgments, cross examination of witness & interpretation of laws than it is called “practice of law” .Practice of Accountancy is a fact but ” Practice of law” is not a fact. It is common to seen that many chartered accountant associations named as TAX BAR ASSOCIATIONS without finding actual meaning of word “ BAR” & its history.
    History of Bar Associations ” Bar associations” were created under Advocates act with the motive “Section 6 sub clause 37[(dd) of Advocates act deals to promote the growth of Bar Associations for the Purposes of effective implementation of the welfare schemes referred to in clause (a) of sub-section (2) of this section and clause (a) of sub-section (2) of section 7;]
    General Dictionary meaning of the word “Bar” is defined as PROFESSION OF A BARRISTER. Till today, I couldn’t understand what is actual work of CA’s Practice of Accountancy or “Practice of law”. I think large number of CA’s are members of Associations known as TAX BAR ASSOCIATIONS. I couldn’t understand how can well qualified members of Accountancy profession have become members of TAX BAR ASSOCIATIONS without make proper interpretation of word “ BAR”
    AS PER AK BALA JI Case Non- Advocate cann’t practice of law. NOW MAIN QUESTION IS THAT WHETHER PRACTICE BEFORE INCOME TAX AUTHORITIES & TRIBUNALS is a “Practice of law” or Practice of “Actual Facts”
    I REQUEST TO CA MEMBERS PLEASE ANSWER WITH SUPPORTING EVIDENCES TO MY ABOVE QUESTION.

  24. SACHIN S.RAO says:

    Other than TAX ATTORNEY should not be allowed to appear before Revenue Authorities to maintain dignity of tax practice & render justice to assesses

  25. BSKRAO says:

    Accountants not accountable to Income-Tax Deptt in S..288(5) (a) . This incurable virus in the statute book of income-Tax Act require deletion of appearance clause for Accountants from S.288(2)

    BSKRAO, Detroit, USA

  26. Ca Nishant Maitin says:

    Dear friends,

    This dispute about refraining chartered accountants from appearing before any authority has been misconstrued by certain bar associations, who in the anxiety have wrongly interpreted the judgement of the Apex court delivered in the case of Madras Bar Association.

    Para 78 of the said judgement is very much clear as it spells the thought process of the hon’ble court.

    The court has observed that NTT will have to hear appeals from various tribunals only on substantial question of law and as such members of CA and CS institutes may bnot be experts to deal with such questions of law.

    However, the hon’bl;e court has noted that CAs are experts in accounts and these issues fall within realms of facts. Tribunals and lower authorities are fact findng authorities and this has been reiterated many a times.

    Thus there is no bar for CAs to appear before authorities.

    The hon’ble court had only expressed its reservations and denied permission to CAs to appear before NTT. The operative lines read as “While recording the above conclusion, we simultaneously hold Section 13(1), in so far as it allows chartered accountants to represent a party to an appeal before the NTT, as unconstitutional and unsustainable in law.” (NTT has to be emphasised)

    So if at all any bar did exist, it existed only for appearance before NTT, which has again been stuck off from the statue book by declaring the entire enactment as constitutional.

    This debate is of no relevance as the present position is that we chartered accountants have been practicing before various tribunals across the country for years and would continue to do so till we all stand united for preserving the profession.

    Further, am sure that after reading this judgement which has been highlighted by the friends from bar, our members will also come in practice before TRAI, CLB, SEBI,CCI and SEX authorities.

    Hope this adds come clarification on the issue for my chartered accountant brothers and advocate friends.

  27. MANDEEP SINGH says:

    Sir, Before argue regarding validity of Section 288(2) of Income Tax Act 1961, we need to understand what is dispute under FEMA ACT & Hon’ble Supreme court have given judgment in A.K BALA JI CASE related to FEMA ACT. Main dispute in the case is regarding “Practice of law” under section 32 of FEMA ACT . In a above mentioned case Apex court have given judgment that “Advocates are only recognized class for Practice of law in litigation and Non- litigation matters, who are registered with Bar Council of India or with State Bar Councils.

    Section 32 of Fema act

    32.) Right of appellant to take assistance of legal practitioner or chartered accountant and of Government, to appoint presenting officers: (1) A person preferring an appeal to the Appellate Tribunal or the Special Director (Appeals) under this Act may either appear in person or take the assistance of a legal practitioner or a chartered accountant of his choice to present his case before the Appellate Tribunal or the Special Director (Appeals), as the case may be.
    (2) The Central Government may authorise one or more legal practitioners or chartered accountants or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal or the Special Director (Appeals), as the case may be.

  28. LKA says:

    1. I have seen cases handled by Advocates resulting in heavy taxes on the assessee because they do not know what exactly income tax is. they do not know how to write, communicate and plead before the tax authorities. how can they say that they are only entitled to carry on. i am now cleaning the mess that has been created by those advocates.

    2. I have also seen chartered accountants, who does not know how to draft a partnership deed or even the meaning of partnership. one chartered accountant even did not know the difference between the deed of partnership and deed of retirement. however, one must agree a ca is successfull by the way he get his clients relief not by the knowledge he possess. in wb when in all share capital cases, additions have been made, few have succeeded in not getting the additions. this is amazing.

  29. RiddhiSiddhi says:

    @Puttaraju S

    AND what about CA…. Currupt Adami, Chalu Adami, Chaplus Adami,Chamcha Adami and above all a window dresser…. & so on…
    Hence please follow the dignity of others profession otherwise nobody will respect to you so called Accountants (Diwanji).. Legal Profession is a noble profession along with Medical Profession since long centuries dated back… accountants are very new concept therefore “Apani Chaddar se jyada pair nahi failana chahiye”… please deal with accounts only… do not deal illegally with Law Profession…

  30. Rajesh Thakkar Advocate says:

    Dear Freinds,

    Auther is completly correct. After the Madras Advocate Association judgment the all are other than Advocate class are not qualified to plead the case. There is a difference between appear and represent the case. Appear relat with only to submit something and not represent/plead.

    Please refere CA Act. The duty of the CA is to provide service of accountancy only. But today the CA is acting as an Advocate.

    The Bar Council of India also is asking the to delete the other class from the sec. 288 of the Income-tax Act.

    We the taxation advocates are egarly wait for amendment into sec 288. After the latetest constitutional bench of the Hon’ble Apex Court the legal situation is very clear in favor of advocate.

    I hope that CA must accept the Hon’ble Apex Court’s verdict with respect otherwise they may victim of section 45 of the Advocate Act.

  31. CA R.K.BHALLA says:

    Sir

    I agree with you,we are not so much united as other professional association. It may be for any reason ,but true facts are that we fell helpless when we need support.Our professional has a great values. But we do not have the same value in the heart and mind of other person such a business houses/I.T. dept etc.

    I was also living at 64 Chappla street in the year of 1967-69.

    Reg

    CA BHALLA
    09810067811

  32. PUNIT says:

    THIS ARTICLE IS SO POOR. NOBODY SHOULD READ THIS. IF ANYBODY WOULD READ THIS ARTICLE, HIS/HER OWN CONCEPTS CAN BE DAMAGED.

    THANKS

  33. Sekar says:

    Its a good move by Income Tax Officials……..I welcome…….because C.A’ s should not feel that they are the only supreme in accounts profession, becoz of answering tough questions in their exams. Be compete with others…..like other countries.

  34. CA MOSIM PATEL says:

    Sincere Thanks to CA AMRESH VASHISHT, Meerut for taking such an important updates relating to working of bar association. Hope ICAI will act best based on these information. In today era, CA’s faternity getting fired or looking to capture the positions of CA’s by every association from CAAG, ITAT, ICSI, Bar Association. Again thanks to sir.

  35. dr.g.balakrishnanha says:

    first equip yourself legally well and that would help CAs to appear, but today CAs failed in several matters that is creating the problem.

    i saw a CA he could not understand the secs 142,143 correctly and that way made his client suffer that had created the very assessee to appear in the matter and finally succeeded in nullifying sec 143 notice of an AO.

    Madras bar association v/s NTT SC rightly ruled interpretation of laws is not the cup of tea of CAs, for that would affect assessees that way very NTT act was quashed u might be knowing.

    unless one is capable of properly interpreting laws it is not prudent for any one appear even if he is a lawyer .

    any lawyering calls for skills that are must. else sufferer is the client sir.

    if institute wants the CAs to appear it should make an additional diploma like diploma in skilful interpretation of taxation laws, that would really could help your query.

  36. gavin c dsouza says:

    when i pass by a court of any level i see a lot of black suited persons even in slippers hanging out in the premises and on the roads walking aimlessly and even approaching litigants to let them have their case. my personal experience with this supposed to be competitor is that it is filled with a majority of liars who do not know the bakcground of the assessee and even do not show any interest in trying to understand his opeartions and hence make a fool of the assess in not being able to present the facts of the case correctly with the interests of the client in mind.
    a C A takes the fees for the work done and not for the work to be done unlike the black coats and this leaves the assessee with more faith in us C A s hence we C A s should stand up to our integrity and let the nation know that we are an educated lot who have put in effort to earn our laurels and not got it by hook or by crook

  37. g krishnan says:

    The contention of the advocates are not as per law. This should be fight back. g krishnan senior audit officer, AG office chennai.

  38. g krishnan says:

    The contention of the advocates are not as per law. This should be fight back. g krishnan senior audit officer, AG office chennai.

  39. Ashok says:

    Exactly Sriram. The Section 288 is wide enough for CAs to continue to represent their clients. The cited case laws in the article are not exactly relevant to CAs practising law. The article has no clear argument and uses petitions by some association as a case for ICAI to respond. Not tenable. Request the author to come out with a coherent case, if really there is one.

  40. Dhawal Jain says:

    Firstly, Notification of ICAI does not have legal binding force on Government authorities and judiciary. It can at the maximum be a clarification for the management of members and issues concerning its members. Thus, your idea that ICAI notification will help the desperate needs of Chartered Accountants is a fallacy in itself.
    Furthermore, the quality of Chartered Accountants is the major issue here. I have witnessed the lack in quality of new Chartered Accountants. ICAI is going to be redundant soon. It will only be a regulatory body for the purpose of regulating its members and examinations.
    The lack in quality and ethics of this profession is causing this downfall. Nobody is going to take the holders of this profession any more seriously than a juvenile saying the same. Thus, its high time ICAI regulates the quality instead of making more CAs in bulk with utter disregard to their quality

  41. B.C.GURU SWAMY says:

    Thank u sir well said now ICAI and other stake holders should rise.
    Further it is my understanding that where ever there is a question of fact any CA/ITP/AR can appear and wherever there is question of law is involved advocates only can appear.This is being mis interpreted and creating a hue and cry.This issue should be addressed by legal bodies.To avoid further damage to the tax professionals

  42. Puttaraju S says:

    will the President oblige?
    tax authorities and “lawyers aka liars” have found something to cause disturbance.

  43. ca puneet agarwal says:

    GONE ARE THE OLD DAYS WHEN ICAI WAS VERY POWERFUL AND WAS A LEAD ACTOR LIKE AAMIR KHAN TODAYS REALITY IS IT IS A SUPPORTING ACTOR LIKE ALOK NATH.NFRA AND NACAS IS HEAVILY PROMOTED AND SUPPORTEDBY THE GOVERNMENT.SOMEMORE BODIES ARE GOING TO BE APPOINTED BY GOVERNMENT ON GRC GOVERNANCE RISK COMPLIANCE.THE GOVERNMENT CONSIDERS ICAI AS A CONSULTANT BODY AND WILL CONSULTONLYIF NECESSARY. PLEASE WRITE TO THE RAJASTHAN GOVERNMENT AND THE BODY TO WHOM THESE TAX BAR ASSOCIATIONS REPORT TO.REALITY IS EVERYBODY LISTENS TO AAMIR KHAN VERY FEW PEOPLE LISTENS TO ALOK NATH.WRITING TO ICAI WILL NOT HELP AS THESE TAX BAR ASSOCIATIONS DO NOT REPORT TO ICAI.

  44. SRIRAM says:

    As per sec 288 (vi) any person who has acquired such educational qualifications as the board may prescribe for this purpose can appear – such qualification being a degree from any university. So instead of fighting with the department one can use this section to appear before finality is arrived

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