Professional Update
(Miscellaneous Case laws)
Civil Writ 267/2021 (Supreme Court)
Shaji Poulose
vs
ICAI.
Question of law.
- Whether the ICAI (Respondent) could imposed the restriction on the no. of tax audit u/s 44AB of the income tax act, pursued by a CA.
- Whether that restriction would be violative of article 19(1)(g) of the constitution.
- Whether a CA exceeding that restriction would amount to disciplinary action.
Held.
The Supreme Court held that the respondent preamble provides that for the purpose of regulating and governing the profession, the institute has a power to impose restriction. This restriction will enhance the quality of the tax audit undertaken. Therefore, the restriction is intra vires to the act.
The restriction on the no. of the tax audit is not violative of Article 19(1)(g), as the tax audit is not a right of the CA professional, it is just a privilege to do an act. This restriction will be governed by article 19(6) of the constitution that it rule made for the general public.
CA exceeding the restriction would amount to disciplinary action as the ICAI has authority to impose the restriction. This rule of limiting the 60 tax audit will be governed with effect from 01.04.2024.
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CA Manoj Garg
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