ICAI Removes Names of Chartered Accountants For Professional Misconduct

The Committee further noted that the tax audit assignment under Section 44AB of the Income-Tax Act 1961 is a time-bound assignment unlike other professional fields, and the work of audit requires precision. The certificate of audit issued by a Chartered Accountant under Section 44AB of Income Tax Act 1961 has statutory force for the purpose of Income Tax whereas a Chartered Accountant in practice is free to accept audits under Sections 44AD and 44AE of the Income-tax Act, 1961 without any limit. Thus, considering all these relevant factors, the Committee viewed that the ceiling of tax audit limit is not in any way unreasonable or discriminatory.

The Committee, accordingly, after consideration of all relevant facts and material on record as also the nature of tax audits, had found such a ceiling to be necessary in the larger interest of the profession and the guidelines on the tax audit assignment under Section 44AB of the Income Tax Act, 1961. The Committee noted that the Respondent had violated Council guidelines bearing No.1-CA (7)/02/2008 dated 8th August, 2008 by conducting tax audits under section 44AB of Income Tax Act, 1961 in excess of number stipulated in said guidelines.


Keeping in view the facts and circumstances of the case and material on record, the Committee , ordered that the name of the Respondent i.e. CA Rajender Kumar (M. No. 084956), Palwal be removed from Register of members for a period of 03 (Three) Months and also imposed a fine of Rs. 5,00,000/- {Rupees Five lakhs} which shall be paid within a period of 03 (Three) months from the date of receipt of this Order.

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