{"id":12260,"date":"2018-09-19T16:06:38","date_gmt":"2018-09-19T10:36:38","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=12260"},"modified":"2018-09-19T16:06:38","modified_gmt":"2018-09-19T10:36:38","slug":"itat-should-report-unethical-cas-to-icai-for-disciplinary-action-high-court","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/itat-should-report-unethical-cas-to-icai-for-disciplinary-action-high-court\/","title":{"rendered":"ITAT Should Report Unethical CAs To ICAI For Disciplinary Action: High Court"},"content":{"rendered":"<p>After Narendra Modi and Piyush Goyal, the High Court has come down heavily on the CAs for conducting their practice in an allegedly corrupt manner. It has signaled zero-tolerance policy towards the alleged unethical practice of CAs of certifying bogus accounts with a view to mislead bankers and revenue authorities <\/p>\n<h2> Piyush Goyal Censures CAs For \u2018Corrupt Practice\u2019 <\/h2>\n<p>Hon\u2019ble Piyush Goyal, the Minister for Railways, Coal and Corporate Affairs, is a distinguished rank holder CA in his own right. <\/p>\n<p>He did some plain speaking at the ICAI Annual Function. <\/p>\n<p>He bluntly accused the CAs of practicing in an alleged \u201c<em>corrupt<\/em>\u201d manner and facilitating \u201c<em>tax chori<\/em>\u201d by unscrupulous taxpayers. <\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">If all chartered accountants come together and decide that they will only practice honesty, then the problem of corruption in the country will be resolved: <a href=\"https:\/\/twitter.com\/PiyushGoyal?ref_src=twsrc%5Etfw\">@PiyushGoyal<\/a><\/p>\n<p>&mdash; Piyush Goyal Office (@PiyushGoyalOffc) <a href=\"https:\/\/twitter.com\/PiyushGoyalOffc\/status\/960864878293671936?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"hi\" dir=\"ltr\">\u0938\u092d\u0940 \u091a\u093e\u0930\u094d\u091f\u0930\u094d\u0921 \u090f\u0915\u093e\u0909\u0902\u091f\u0947\u0902\u091f\u094d\u0938 \u0915\u094b \u0924\u092f \u0915\u0930\u0928\u093e \u091a\u093e\u0939\u093f\u092f\u0947 \u0915\u093f \u0907\u0938 \u0926\u0947\u0936 \u0915\u094b \u092c\u0926\u0932\u0928\u0947 \u092e\u0947\u0902 \u0939\u092e \u092a\u0939\u0932 \u0915\u0930\u0947\u0902\u0917\u0947, \u0914\u0930 \u0915\u094b\u0908 \u092d\u0940 \u0917\u0932\u0924 \u0915\u093e\u0930\u094d\u092f \u0928\u0939\u0940 \u0939\u094b\u0928\u0947 \u0926\u0947\u0902\u0917\u0947: <a href=\"https:\/\/twitter.com\/PiyushGoyal?ref_src=twsrc%5Etfw\">@PiyushGoyal<\/a><\/p>\n<p>&mdash; Piyush Goyal Office (@PiyushGoyalOffc) <a href=\"https:\/\/twitter.com\/PiyushGoyalOffc\/status\/960863387558260736?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"hi\" dir=\"ltr\">\u091f\u0948\u0915\u094d\u0938 \u0915\u0940 \u091a\u094b\u0930\u0940 \u092f\u0926\u093f \u0915\u094b\u0908 \u0915\u0930\u0924\u093e \u0939\u0948 \u0924\u094b \u0935\u0939 \u0915\u093f\u0938\u0940 \u0917\u0930\u0940\u092c \u0915\u094b \u0917\u0930\u0940\u092c \u092c\u0928\u093e\u092f\u0947 \u0930\u0916\u0928\u0947 \u092e\u0947\u0902 \u0938\u0939\u092f\u094b\u0917 \u0926\u0947\u0924\u093e \u0939\u0948, \u0908\u092e\u093e\u0928\u0926\u093e\u0930\u0940 \u0906\u0938\u093e\u0928 \u0930\u093e\u0938\u094d\u0924\u093e \u0928\u0939\u0940 \u0939\u0948, \u0932\u0947\u0915\u093f\u0928 \u092f\u0926\u093f \u090f\u0915 \u092c\u093e\u0930 \u0924\u092f \u0915\u0930 \u0932\u0947\u0902 \u0924\u094b \u0907\u0938 \u092a\u0930 \u091a\u0932\u0928\u093e \u0938\u0902\u092d\u0935 \u0939\u0948: <a href=\"https:\/\/twitter.com\/PiyushGoyal?ref_src=twsrc%5Etfw\">@PiyushGoyal<\/a><\/p>\n<p>&mdash; Piyush Goyal Office (@PiyushGoyalOffc) <a href=\"https:\/\/twitter.com\/PiyushGoyalOffc\/status\/960865022921596928?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Urge you all to try and work in a way so that we can become the architects of the New India and create an atmosphere where people are people are paying their taxes honestly: <a href=\"https:\/\/twitter.com\/PiyushGoyal?ref_src=twsrc%5Etfw\">@PiyushGoyal<\/a><\/p>\n<p>&mdash; Piyush Goyal Office (@PiyushGoyalOffc) <a href=\"https:\/\/twitter.com\/PiyushGoyalOffc\/status\/960865751925182464?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/xpGfOXFQnro?ecver=1\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe> <\/p>\n<h2> Prime Minister Narendra Modi also hits out at CAs <\/h2>\n<p>Hon\u2019ble Narendra Modi, the Prime Minister, also made it clear that he does not have a high opinion about CAs. <\/p>\n<p>In a <a href=\"https:\/\/www.newindianexpress.com\/business\/2017\/jul\/01\/pm-narendra-modi-does-some-plain-talking-to-chartered-accountants-1622983.html\" rel=\"noopener\" target=\"_blank\">speech<\/a> delivered at the foundation day function of the ICAI, the Prime Minister sent a strong message against chartered accountants trying to help entities in black money dealings.<\/p>\n<p>He pointed out that after demonetization, the work of CAs increased and many cancelled their Diwali holidays in attempting to help entities dealing with illicit funds post-demonetisation. <\/p>\n<p>\u201c<em>I am not sure how many did work for their clients and how many for the nation,<\/em>\u201d he said.<\/p>\n<p>The Hon\u2019ble Prime Minister also hauled up the ICAI for its tardy action in prosecuting guilty CAs. <\/p>\n<p>He pointed out that more than 1,400 cases are pending for many years and disciplinary action has been taken against only 25 CAs for irregularities. <\/p>\n<p>Narendra Modi reminded the CAs that they need to safeguard society&#8217;s economic health and have a big responsibility. <\/p>\n<p>&#8220;<em>Your signature is more powerful than that of the prime minister and the government also believes the accounts signed by you,<\/em>&#8221; he said.<\/p>\n<p>He also advised CAs to warn persons with black money that they would not be spared and should reform themselves before it is too late.<\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/SyTjRGnyR8A?ecver=1\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<h2> CAs upset with the plain-speaking <\/h2>\n<p>Understandably, some distinguished CAs took strong exception to the fact that the entire CA fraternity had been maligned due to the misdeeds of a few unscrupulous professionals. <\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Sorry Feeling ashamed that u even saying these words instead of increasing brand value all professional working day and night for successful implementation despite these words join practice u will see<\/p>\n<p>&mdash; S K Agarwal (@ska_naman) <a href=\"https:\/\/twitter.com\/ska_naman\/status\/960943032316002304?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/PiyushGoyalOffc?ref_src=twsrc%5Etfw\">@PiyushGoyalOffc<\/a> So , you think CA are not working honestly. Just because of tax practitioner, you get the taxes on time. Don\u2019t defame the profession. You are also part of it.<\/p>\n<p>&mdash; CA CHANDAN SHAHI (@cachandanshahi) <a href=\"https:\/\/twitter.com\/cachandanshahi\/status\/960930039893180416?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Sir, I am a BJPian by birth. With due respect I would like to ask you:<br \/>Do you think CA&#39;s are not honest in their work?? <br \/>And what about ministers in the government, they all are honest ??<\/p>\n<p>&mdash; The VIRU (@Vspeaks_) <a href=\"https:\/\/twitter.com\/Vspeaks_\/status\/960867169809580032?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">(2\/2)CA&#39;s those are in practice or job worked day and night for success of GST. They are working hard to ensure the compliance of laws in the country. <\/p>\n<p>We respect you a lot and expect you to take back your tweet.  <br \/>Thanks.<a href=\"https:\/\/t.co\/kQbeWqx8LE\">https:\/\/t.co\/kQbeWqx8LE<\/a><\/p>\n<p>&mdash; The VIRU (@Vspeaks_) <a href=\"https:\/\/twitter.com\/Vspeaks_\/status\/960877446705721344?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Sorry to say but we CA\u2019s dont have any platform where we can say that if all politicians come together &amp; decide that they will only work honestly then the problem of corruption in the country will be resolved. We are moving towards wrong directions. Need an alarm Sir. <a href=\"https:\/\/twitter.com\/theicai?ref_src=twsrc%5Etfw\">@theicai<\/a> <a href=\"https:\/\/t.co\/A7FOVQX5Le\">pic.twitter.com\/A7FOVQX5Le<\/a><\/p>\n<p>&mdash; CA ROHIT RUWATIA (@rohit_ruwatia) <a href=\"https:\/\/twitter.com\/rohit_ruwatia\/status\/960889338467962880?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Good that you think about corruption because there is no steps taken by govt to crackdown on Corrupt Netas and Corrupt Babus <\/p>\n<p>Tax collection is responsibility of govt machinery which is failing miserably and not CAs.<\/p>\n<p>Thanks<\/p>\n<p>&mdash; Atul Modani (@atulmodani) <a href=\"https:\/\/twitter.com\/atulmodani\/status\/960938687696486402?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">If all advocates comes together and decide not to defend criminals in court of law, then this country will become crime free soon!<\/p>\n<p>&mdash; Vineet Jain (@vinejain) <a href=\"https:\/\/twitter.com\/vinejain\/status\/960924456406446080?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"hi\" dir=\"ltr\">GST \u0915\u093e \u0938\u0949\u092b\u094d\u091f\u0935\u0947\u092f\u0930 2018 \u0915\u0947 \u091c\u0917\u0939 2017 \u0932\u0947 \u0930\u0939\u093e \u0964\u0964 \u0938\u0949\u092b\u094d\u091f\u0935\u0947\u092f\u0930 \u0906\u092a \u0932\u094b\u0917 \u0938\u0947 \u0938\u092e\u094d\u092d\u0932 \u0928\u0939\u0940 \u0930\u0939\u093e \u0914\u0930 \u092f\u0939\u093e\u0901 \u092b\u093e\u0932\u0924\u0942 \u0915\u0947 \u091c\u094d\u091e\u093e\u0928 \u092a\u0947\u0932 \u0930\u0939\u0947 \u0939\u0948 \u0964\u0964\u0906\u092a\u0915\u0947 \u092c\u0915\u0935\u093e\u0938 \u0938\u0949\u092b\u094d\u091f\u0935\u0947\u092f\u0930 \u0928\u0947 7 \u092e\u0939\u0940\u0928\u0947 \u0938\u0947 CAs \u0915\u0940 \u0928\u0940\u0902\u0926 \u0939\u0930\u093e\u092e \u0915\u0930 \u0930\u0916\u0940 \u0939\u0948 ,\u0906\u092a\u0915\u094b \u0915\u0941\u091b \u092a\u0924\u093e \u092d\u0940 \u0939\u0948?? \u092f\u093e \u0906\u092a \u092d\u0940 \u0938\u093f\u0930\u094d\u092b \u0915\u093e\u0902\u0917\u094d\u0930\u0947\u0938 \u0915\u0940 \u0924\u0930\u0939 \u0926\u0947\u0936 \u0915\u094b \u0920\u0917\u0928\u0947 \u091a\u0932\u0947 \u0939\u0948 ??? <a href=\"https:\/\/t.co\/A53CttmNdf\">pic.twitter.com\/A53CttmNdf<\/a><\/p>\n<p>&mdash; CA Dhananjay Singh (@CADhananjay1) <a href=\"https:\/\/twitter.com\/CADhananjay1\/status\/960927294586941441?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">(1\/2)You thinks CA&#39;s are the only responsible for corruption in the country. All Ministers, CBI, CAG, Police, Administrative officers, all judges and other gov. peoples are certified honest by birth.<a href=\"https:\/\/t.co\/kQbeWqx8LE\">https:\/\/t.co\/kQbeWqx8LE<\/a><\/p>\n<p>&mdash; The VIRU (@Vspeaks_) <a href=\"https:\/\/twitter.com\/Vspeaks_\/status\/960876540031455238?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Pls be assured sir about d honesty of our members. Few black sheep can\u2019t brand our noble profession. If govt wants watchdogs to be greyhounds pls walk d talk-independently appoint all auditors for all entities and see the results! Else pls don\u2019t let exceptions be generalized.<\/p>\n<p>&mdash; Aniket Talati (@anikettalati) <a href=\"https:\/\/twitter.com\/anikettalati\/status\/961101334446567424?ref_src=twsrc%5Etfw\">February 7, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">I am sure your bosses in party are letting you talk like this because as a CA you are well aware of reality <br \/>Arrogance of Ministers &amp; Babus is killing tax collection &amp; not legal advice of CA, even CBDT chief agrees that they can&#39;t track down defaulters &amp; hence keep harassing <a href=\"https:\/\/t.co\/0jDxdcujv3\">pic.twitter.com\/0jDxdcujv3<\/a><\/p>\n<p>&mdash; Atul Modani (@atulmodani) <a href=\"https:\/\/twitter.com\/atulmodani\/status\/960946355534311424?ref_src=twsrc%5Etfw\">February 6, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>  <\/p>\n<h2> CAs feel heat and resign in droves from post of auditors<\/h2>\n<p>It is not a coincidence that after the plain-speaking by Narendra Modi and Piyush Goyal, a number of auditors have developed cold feet and resigned en-masse to avoid being hauled up for alleged malpractice. <\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-07-03\/why-auditors-are-suddenly-bailing-on-clients-in-india-quicktake\" rel=\"noopener\" target=\"_blank\">Bloomberg<\/a> reported that auditors of at least 30 listed companies abruptly resigned in the first five months of the year, almost double the 16 for all of 2017. <\/p>\n<p>It claimed that these departures are because the regulators are cracking down on governance lapses and outright corporate fraud as part of Prime Minister Narendra Modi\u2019s efforts to recast the image of Asia\u2019s No. 3 economy as a corruption-free place to do business.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">3rd listed co in a row where Auditors have resigned-Vakrangee,  Manpasand &amp; now Atlanta Ltd.<br \/>Underlines very little tolerance for even the slightest whiff of doubt. Take no risk-no chances approach! <a href=\"https:\/\/twitter.com\/BTVI?ref_src=twsrc%5Etfw\">@BTVI<\/a> <a href=\"https:\/\/twitter.com\/Geetu_Moza?ref_src=twsrc%5Etfw\">@Geetu_Moza<\/a> <a href=\"https:\/\/twitter.com\/stockgurupiyush?ref_src=twsrc%5Etfw\">@stockgurupiyush<\/a> <a href=\"https:\/\/twitter.com\/ShailDamania?ref_src=twsrc%5Etfw\">@ShailDamania<\/a> <a href=\"https:\/\/twitter.com\/SEBI_India?ref_src=twsrc%5Etfw\">@SEBI_India<\/a> <a href=\"https:\/\/twitter.com\/theicai?ref_src=twsrc%5Etfw\">@theicai<\/a> <a href=\"https:\/\/twitter.com\/PwC_IN?ref_src=twsrc%5Etfw\">@PwC_IN<\/a> <a href=\"https:\/\/t.co\/00pnIBlf6W\">pic.twitter.com\/00pnIBlf6W<\/a><\/p>\n<p>&mdash; Siddharth Zarabi (@szarabi) <a href=\"https:\/\/twitter.com\/szarabi\/status\/1001820826231099393?ref_src=twsrc%5Etfw\">May 30, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">The auditor of Manpasand Beverages resigned because they didn\u2019t share \u201csignificant information\u201d for auditing its financial statements. <a href=\"https:\/\/t.co\/DE4qwJAJFK\">https:\/\/t.co\/DE4qwJAJFK<\/a> <a href=\"https:\/\/t.co\/f0ekjsmlZ0\">pic.twitter.com\/f0ekjsmlZ0<\/a><\/p>\n<p>&mdash; BloombergQuint (@BloombergQuint) <a href=\"https:\/\/twitter.com\/BloombergQuint\/status\/1001164954756698114?ref_src=twsrc%5Etfw\">May 28, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Has this ever happened? Rarely <\/p>\n<p>It is uncommon for auditors in India to resign halfway through an audit. <\/p>\n<p>On Apr. 27, Price Waterhouse &amp; Co resigned as auditor of Vakrangee Ltd.<br \/>On May 26, Deloitte Haskins &amp; Sells resigned as auditor of Manpasand Beverages Ltd.<\/p>\n<p>The change<\/p>\n<p>&mdash; #RenukaJain, FCA ?? (@RenukaJain6) <a href=\"https:\/\/twitter.com\/RenukaJain6\/status\/1013025576498679808?ref_src=twsrc%5Etfw\">June 30, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">All this auditing firms &quot; So called  BIG 4&#39;s&quot; earned crores of Rupees doing fake audits!!!<br \/>Moreover Business of PWC multiplied several times after SATYAM SCAM because all crook companies knew that PWC can provide such report for few pennies..<\/p>\n<p>&mdash; Make In India (@_makeinindia) <a href=\"https:\/\/twitter.com\/_makeinindia\/status\/1013033852267323394?ref_src=twsrc%5Etfw\">June 30, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">I wonder what&#39;s worse: having a low quality Auditor OR having a so- called high quality Auditor, who resigns one day <a href=\"https:\/\/t.co\/MGiIsMr8xJ\">pic.twitter.com\/MGiIsMr8xJ<\/a><\/p>\n<p>&mdash; Shankar Sharma (@1shankarsharma) <a href=\"https:\/\/twitter.com\/1shankarsharma\/status\/1000964839332696064?ref_src=twsrc%5Etfw\">May 28, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Kitex Garments has appointed a new auditor after the previous auditor showed an unwillingness for reappointment. Watch Sabu Jacob, Chairman &amp; Managing Director Of Kitex Garments in a <a href=\"https:\/\/twitter.com\/hashtag\/CNBCTV18Exclusive?src=hash&amp;ref_src=twsrc%5Etfw\">#CNBCTV18Exclusive<\/a> conversation with <a href=\"https:\/\/twitter.com\/CNBCTV18Live?ref_src=twsrc%5Etfw\">@CNBCTV18Live<\/a>\u2019s <a href=\"https:\/\/twitter.com\/latha_venkatesh?ref_src=twsrc%5Etfw\">@latha_venkatesh<\/a> <a href=\"https:\/\/twitter.com\/_soniashenoy?ref_src=twsrc%5Etfw\">@_soniashenoy<\/a> <a href=\"https:\/\/t.co\/yA1eyaQuOg\">pic.twitter.com\/yA1eyaQuOg<\/a><\/p>\n<p>&mdash; CNBC-TV18 News (@CNBCTV18News) <a href=\"https:\/\/twitter.com\/CNBCTV18News\/status\/1014723991641063429?ref_src=twsrc%5Etfw\">July 5, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/OnCNBCTV18?src=hash&amp;ref_src=twsrc%5Etfw\">#OnCNBCTV18<\/a> | Not facing any auditor issues; Will be reporting Q1 results on time says 8K Miles <a href=\"https:\/\/t.co\/rH9JLtxWPu\">pic.twitter.com\/rH9JLtxWPu<\/a><\/p>\n<p>&mdash; CNBC-TV18 (@CNBCTV18Live) <a href=\"https:\/\/twitter.com\/CNBCTV18Live\/status\/1014004913980837888?ref_src=twsrc%5Etfw\">July 3, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-cards=\"hidden\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Dilip Buildcon&#39;s Rohan Suryavanshi clarifies rumours regarding the company auditors resigning. <a href=\"https:\/\/t.co\/5koteeWQu8\">pic.twitter.com\/5koteeWQu8<\/a><\/p>\n<p>&mdash; BloombergQuint (@BloombergQuint) <a href=\"https:\/\/twitter.com\/BloombergQuint\/status\/1001704154421714945?ref_src=twsrc%5Etfw\">May 30, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Satyam?src=hash&amp;ref_src=twsrc%5Etfw\">#Satyam<\/a> case fallout |  Market regulator <a href=\"https:\/\/twitter.com\/SEBI_India?ref_src=twsrc%5Etfw\">@SEBI_India<\/a> bans <a href=\"https:\/\/twitter.com\/PwC?ref_src=twsrc%5Etfw\">@PwC<\/a> entities from auditing listed entities for two years. More details on <a href=\"https:\/\/twitter.com\/hashtag\/Sebi?src=hash&amp;ref_src=twsrc%5Etfw\">#Sebi<\/a> ban on Price Waterhouse Network here: <a href=\"https:\/\/t.co\/14WeEzySmA\">pic.twitter.com\/14WeEzySmA<\/a><\/p>\n<p>&mdash; ET NOW (@ETNOWlive) <a href=\"https:\/\/twitter.com\/ETNOWlive\/status\/951292354379464704?ref_src=twsrc%5Etfw\">January 11, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Congratulations, <a href=\"https:\/\/twitter.com\/hashtag\/SEBI?src=hash&amp;ref_src=twsrc%5Etfw\">#SEBI<\/a> for action on <a href=\"https:\/\/twitter.com\/PwC?ref_src=twsrc%5Etfw\">@PwC<\/a> for \u201ccooking\u201d Satyam books\/hiding the scam. In truer market system action would be harsher &amp; faster. But this is a great beginning<\/p>\n<p>&mdash; Shekhar Gupta (@ShekharGupta) <a href=\"https:\/\/twitter.com\/ShekharGupta\/status\/951352369538727936?ref_src=twsrc%5Etfw\">January 11, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2> Now Calcutta High Court comes hammer &#038; tongs at CAs <\/h2>\n<p>In the latest judgement in <strong><a href=\"https:\/\/itatonline.org\/archives\/binod-kumar-agarwala-vs-cit-calcutta-high-court-strictures-against-ca-for-certifying-bogus-accounts-with-a-view-to-mislead-bankers-the-matter-is-typical-of-how-business-is-conducted-in-this-country\/\">Binod Kumar Agarwala vs. CIT<\/a><\/strong>, the Hon\u2019ble Calcutta High Court has signaled a zero-tolerance policy towards the alleged nefarious practice of CAs. <\/p>\n<p>The High Court slammed the CAs for certifying bogus loans and misleading lenders, which in turn has led to the colossal NPAs. <\/p>\n<p>\u201c<em>The matter is typical of how business is conducted in this country and why loans obtained from banks remain unpaid,<\/em>\u201d the High Court observed. <\/p>\n<p>The assessee committed fraud on the bank and obtained credit facilities by misrepresenting its financial position. <\/p>\n<p>To aid him in the criminal act, a firm of chartered accountants named \u2018Roy Ghosh and Associates\u2019 issued a certified balance sheet containing bogus figures. <\/p>\n<p>The CA firm boldly issued a disclaimer stating that the figures \u201c<em>have no relation with the actual figures<\/em>\u201d. <\/p>\n<p>\u201c<em>We are giving the information and explanations herewith purely based on estimate basis and have no relation with the actual figures and to avail the bank loan.<\/em>\u201d, it was stated.<\/p>\n<p>The High Court seethed with anger at the blatant temerity of the Chartered Accountant in certifying the bogus balance sheet. <\/p>\n<p>\u201c<em>The substance of the appellant\u2019s submission is that to suit a person\u2019s purposes before one authority or the other, different pictures as to the financial position of such person or any entity under the control of such person may be presented. <\/p>\n<p>This is a question larger than any legal issue under the Income Tax Act and is a matter of public policy. <\/p>\n<p>It is inconceivable that a person may approach a bank by inflating the value of his assets and a few months down the line he can deflate the value of the assets, so to say, while queuing up to pay tax.<\/em>\u201d<\/p>\n<p><em>It is scarcely expected of a banker to question the veracity of any accounts certified by a firm of chartered accountants or to look into the fine print and comprehend therefrom that utterly bogus figures had been furnished only for the purpose of availing of the credit facilities from the bank<\/em>\u201d, it was observed. <\/p>\n<p>The High Court came down heavily on the practice of painting a rosy picture as to the financial position of the applicant seeking credit facilities while at the same time slipping in another balance-sheet and P&#038;L A\/c in the income-tax records indicating a less robust financial position of the constituent. <\/p>\n<p>It described Roy Ghosh and Associates as a \u201c<em>willing accomplice<\/em>\u201d to this criminal and fraudulent practice. <\/p>\n<p>It also held that the accounts cannot be \u201c<em>tailor-made to suit a particular purpose or window-dressed to make it attractive for bankers to rely thereupon and all the gloss and sheen removed thereafter when it was the time to pay tax.<\/em>\u201d<\/p>\n<h2> ITAT hauled up for not reporting the CA to the ICAI <\/h2>\n<p>The ITAT passed strictures and observed that a Chartered<br \/>\nAccountant is governed by certain discipline and he has to conduct audit in accordance with the provisions and rules of the Chartered Accountants Act. <\/p>\n<p>It also noted that Schedule II and Part 1 holds a chartered accountant guilty of professional misconduct if he permits his name or name of his firm to be used in connection with the audit based on estimate.<\/p>\n<p>However, the High Court hinted that the ITAT should have gone further and been vigilant towards the abetment by the CA in the \u201c<em>commission of a colossal act of misrepresentation<\/em>\u201d. <\/p>\n<p>\u201c<em>Indeed the Appellate Tribunal may only be faulted for not reporting Roy Ghosh and Associates to the Institute of Chartered Accountants for having apparently abetted in the commission of a colossal act of misrepresentation which the appellant assessee undertook before his bankers for the purpose of obtaining credit facilities by indicating a financial position that was not warranted by the books of the assessee<\/em>\u201d, it held.<\/p>\n<h2> ICAI directed to examine the issue <\/h2>\n<p>Ultimately, the Hon\u2019ble High Court directed that a copy of the order be sent to the ICAI for appropriate steps, if thought fit, to be taken against Roy Ghosh and Associates in accordance with law and upon due notice to such firm of CAs.<\/p>\n<p>Whether the ICAI has taken any steps pursuant to the directions of the High Court is not known as of date. <\/p>\n<div class=\"journal2\">Click here to read the judgement of the Calcutta High Court in <a href=\"https:\/\/itatonline.org\/archives\/binod-kumar-agarwala-vs-cit-calcutta-high-court-strictures-against-ca-for-certifying-bogus-accounts-with-a-view-to-mislead-bankers-the-matter-is-typical-of-how-business-is-conducted-in-this-country\/\"><strong>Binod Kumar Agarwala vs. CIT<\/strong><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>After Narendra Modi and Piyush Goyal, the High Court has come down heavily on the CAs for conducting their practice in an allegedly corrupt manner. It has signaled zero-tolerance policy towards the alleged unethical practice of CAs of certifying bogus accounts with a view to mislead bankers and revenue authorities<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/itat-should-report-unethical-cas-to-icai-for-disciplinary-action-high-court\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-12260","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/12260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=12260"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/12260\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=12260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=12260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=12260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}