Chartered accountants body faces penalty from IT dept

Chartered accountants body faces penalty from IT dept
PTI
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First Published: Sun, Jan 11 2009. 02 13 PM IST
Updated: Sun, Jan 11 2009. 02 13 PM IST
New Delhi: Finding violation of tax laws by chartered accountants regulator ICAI, which had dubbed accounts fudging in Satyam Computer as ‘shameful´, the Income Tax authorities have withdrawn tax exemptions given to the body.
A tax assessment panel found violations such as failure to get their accounts signed by auditors, providing loans to partners without guarantee and interest and hiding income from coaching business, following which it decided to impose a penalty on ICAI, a government official said.
As per the tax authority’s order dated 31 December, the penalty is initiated for non-compliance of notice and for concealment of the particulars of income and furnishing of inaccurate particulars of income, said the official who did not want to be named.
When contacted, ICAI President Ved Jain said he was not aware of any such order and declined to comment.
The government official, however, said that ICAI has the option of seeking a review at a higher level for waiver of penalty and restoration of exemption.
“Claims of exemption (under section 12a of IT Act) are disallowed to ICAI for violation of income tax laws on five counts,” the official told PTI here.
Incidentally, ICAI had said it will bar auditors who vetted Satyam’s books from practicing for life, if found guilty. ICAI itself may now face penalty, proceedings for which have already been initiated.
In fact , about Rs33.5 crore income of the institute for the year 2006-07 (the assessment year under consideration) has been held taxable which hints that the income of the institute beyond 2007 will also be taxed.
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First Published: Sun, Jan 11 2009. 02 13 PM IST