Members are aware of the general remarks against ICAI made by Hon 'ble ITAT Mumbai Bench in respect of its order dated 20th August, 2014 wherein the tax advice given by a member of the Institute had been dealt with.
The above matter was considered by the Council at its meeting held on 15th September, 2014.
The Council unanimously felt that the comments made by the Hon'ble Bench on the profession and functions of the ICAI were neither warranted as no facts relating to the profession were before the Hon'ble ITAT nor was any opportunity given to ICAI in the said matter. The Council felt concerned that based on the opinion given by one of the members, general comments have been made in respect of the standards of the entire profession. The Council is of the view that the sweeping observations made by ITAT in the order about the Institute and the profession of Chartered Accountancy in a matter relating to a particular tax payer, are out of context.
The Council is conscious of its responsibility to regulate the conduct of its members. Whenever the Institute come across with any lapse(s) with regard to the conduct of any member, the same is appropriately dealt with under the disciplinary mechanism of the Chartered Accountants Act, 1949 and the Rules framed.
The Council reiterates its respect for the judicial system in the country including the Income Tax Appellate Tribunals. However, the Council has decided to take up the instant matter with appropriate/respective authorities, for expunging the aforesaid remarks made against the profession.
The outcome of the steps taken by the Council will be apprised to the members from time to time.