{"id":15187,"date":"2020-08-14T09:14:32","date_gmt":"2020-08-14T03:44:32","guid":{"rendered":"https:\/\/itatonline.org\/info\/?p=15187"},"modified":"2020-08-14T09:14:32","modified_gmt":"2020-08-14T03:44:32","slug":"ethical-challenges-faced-by-professionals-in-todays-world-a-panel-discussion","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/ethical-challenges-faced-by-professionals-in-todays-world-a-panel-discussion\/","title":{"rendered":"Ethical Challenges Faced By Professionals In Today&rsquo;s World &#8211; A Panel Discussion"},"content":{"rendered":"<p align=\"center\"><strong>Chamber of tax consultants: Ethical Challen<\/strong><strong>ges<\/strong><strong> faced by Professionals in today&rsquo;s world &#8211; A Panel  discussion <\/strong><strong>held<\/strong><strong> <\/strong><strong>on<\/strong><strong> <\/strong><strong>July 15, 2020<\/strong><strong> <\/strong><\/p>\n<p>15th July 2020 marked the 84th birthday of Advocate Shri  V.H.Patil (Born on July 15, 1937) who is one of the eminent tax counsel, known  for professional ethics and integrity. Shri V. H. Patil is mentor for many  professionals, hence the new energetic Membership &amp; Public Relations  Committee of Chamber of Tax Consultants (<strong>CTC<\/strong> chaired by CA Nishtha Pandya with Co-Chairman, CA Premal Gandhi &nbsp;arranged a virtual panel discussion  on the subject of <strong>&ldquo;Ethical Challenges faced by Professionals in today&rsquo;s  world&rdquo;<\/strong>. <\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/CLHZaHTqUEw\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<div id=\"attachment_15195\" style=\"width: 1232px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-15195\" src=\"https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil.png\" alt=\"\" width=\"1222\" height=\"666\" class=\"size-full wp-image-15195\" srcset=\"https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil.png 1222w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-300x164.png 300w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-1024x558.png 1024w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-768x419.png 768w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-100x55.png 100w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-150x82.png 150w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-200x109.png 200w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-450x245.png 450w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-600x327.png 600w, https:\/\/itatonline.org\/info\/wp-content\/uploads\/2020\/08\/v-h-patil-900x491.png 900w\" sizes=\"auto, (max-width: 1222px) 100vw, 1222px\" \/><\/a><p id=\"caption-attachment-15195\" class=\"wp-caption-text\">Mr. V. H. Patil with some distinguished juniors of his Chamber<\/p><\/div>\n<p>Speaking on the occasion, Mr. Anish Thacker, President of CTC for the  year 2020-21 explained in brief qualities of Advocate Shri V.H. Patil and some  of the great advice of Shri V.H.Patil. He also stated that he considers CA Shri  Maganlal Thacker and Advocate Shri V.H. Patil as his <em>Gurus<\/em>.<\/p>\n<p><strong>Summary of the speech delivered by Dr.K.Shivaram,  Senior Advocate<\/strong><\/p>\n<p>Dr K. Shivaram  stated that all juniors of Patil Sir, used to refer him as &lsquo;Patil Saheb&rsquo;, therefore  in his talk, he would refer to Patil Sir, as Patil Saheb.<\/p>\n<p>Patil Saheb  started his practice in year 1960 before the Hon&rsquo;ble Bombay High Court in the  field of general law. Apart from academic brilliancy (He stood first in his LL.B.,  won8 out of 9 awards and is considered a Shanker Seth Hindu Law Scholar &ndash; LL.M.  1959 in Hindu law from University of Mumbai) Patil Saheb is follower of Gandhian  philosophy and a man of immense simplicity.<\/p>\n<p>He highlighted seven  important virtues of Patil Saheb which one may not find in any books or  articles. He stated that he is very optimistic that if a lawyer or Chartered  Accountant follows these seven virtues of Patil Saheb as a role model, nobody  can stop him or her from becoming one of the leading <strong>tax litigation consultants<\/strong>in the Country. The seven virtues are:<\/p>\n<p>1. Teaching of  law<br \/>\n  2.Service to  professional organizations without any expectations -Development of the Chamber  of tax Consultants <br \/>\n  3. Training of  juniors <br \/>\n  4.  Representation before Court <br \/>\n  5. Drafting  skills of the petition and opinions <br \/>\n  6.Courage to  fight for upholding the honour and dignity of the profession.<br \/>\n  7.Service to  humanity<\/p>\n<p><strong>1. Teaching of law <\/strong><\/p>\n<p>Dr. K. Shivaram  stated that his first interaction with Patil Saheb was in the year 1975, when he  was studying in the second year of law at Siddharth college of law (which was  formed by Dr. Babasaheb Ambedkar on July 8, 1945) where Patil Saheb was  teaching the subject of &ldquo;Income-tax and Sales Tax&rdquo;. During those days Taxation  was a compulsory subject in second year of law. He was a student of the evening  batch whereas Patil Saheb was teaching in the morning batch. The then Principal  of the College Shri P.G.Borale told the students in one of his lectures that, <strong>&ldquo;We have a professor named Mr. V.H. Patil,  and when he teaches you will feel like the goddess Saraswathi is herself  teaching you&rdquo;<\/strong>. Closer to the time of examination, Patil Saheb used to  conduct a special combined lecture for the morning and evening batch. Patil  Saheb taught in a very simple language and used to give notes on the subject as  preparation guide for the examination. Patil Saheb taught the Constitution of  India and Taxation laws in Siddharth law college from 1962 to 1976.&nbsp; Patil Saheb was also professor for Post  graduate Studies at the University of Bombay.<\/p>\n<p>When Dr.K.  Shivaram completed his third year of law in the year 1976, Patil Saheb told him  to join his Chamber. After working in a private company, every evening he used  to visit Patil Saheb&rsquo;s chamber just to understand the tax Practice. When he  decided to join Patil Saheb&rsquo;s chamber, he consulted his former employer, who  was one of the leading corporate at that time, and having large number tax  litigation matters. The Finance Director of the group being a Chartered  Accountant, was knowing the who&rsquo;s who of the tax litigation practice. He  advised Dr. K. Shivaram not to leave the job as it would be a risk in his  career.&nbsp; He gave the long list of tax  counsel who could not do well and that he would end up amongst them. Further, he  promised a double salary so that he does not leave the job.<\/p>\n<p>It is Patil  Saheb who told him to leave the job and join the chamber. It is by the grace  and fortune of Patil Saheb that he became a lawyer, otherwise he had no intention  of joining the legal profession. Whatever, he is &nbsp;&nbsp;today it is mainly because of Patil Saheb.<\/p>\n<p><strong>First lesson is, the young lawyers or chartered  accountants must teach in colleges that gives them the presentation skill,  vocabulary and in-depth study of the subject. Patil Saheb taught in colleges  for nearly 14 years <\/strong><\/p>\n<p><strong>2.Service to the professional organizations without  any expectations- Development of the Chamber of tax Consultants (CTC) <\/strong><\/p>\n<p>CTC though it  was established in the year 1926,was not very activetill1976. Patil Saheb was  elected as President in the year1976 &ndash;78. He stated that, it is Patil Saheb who  gave the re-birth to the Chamber of Income-tax Consultants (now known as The  Chamber of Tax Consultants). It is for the first time a tax counsel who is practicing  on direct taxes was elected as the President of the Chamber of Income-tax  consultants. It was Shri B. C. Joshi, Shri K.K. Ramani and Shri&nbsp; P.C.Joshi who deserve to be acknowledged for  introducing Patil Saheb to the Chamber of Income tax consultants, as the  President.<\/p>\n<p>Patil Saheb commanded  the highest respect from and was friendly with the entire tax Bar of Mumbai. It  is Patil Saheb who has persuaded Dy. Y.P. Trivedi, Senior Advocate, Shri S.E.  Dastur, Senior Advocate, Shri D.M. Harish Advocate and Shri Narayan Varma one  of the eminent Chartered Accountants and many more to shoulder the  responsibility as President of the Chamber. Patil Saheb is the only one  professional who was elected as the President of the Chamber of tax consultants  from 1975 to 1977 and 1999-2000 (75thyear of the Chamber of tax  consultants Platinum Jubilee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n<p><strong>Second lesson is, work for the association don&rsquo;t  expect the post or recognition. <\/strong><\/p>\n<p><strong>3.&nbsp; Training of  juniors <\/strong><\/p>\n<p>Dr. K. Shivaram<em>stated that  he has the great satisfaction of sharing with the participants that Patil Saheb  has trained nearly 21juniors from his chamber. This information he could able  to compile with the help of Advocate Shri N.R. Jagtap, who is one of the senior  most juniors of Patil Saheb. <\/em>&nbsp;According to  him this is the greatest contribution of Patil Saheb for development of the tax  profession.<\/p>\n<p>Three of his  juniors have become past presidents of the Chamber of consultants. (Including him  other two are Advocate Shri Keshav B. Bhujle and Advocate Shri Vipul B Joshi)<\/p>\n<p>Many of Patil  Sahib&rsquo;s juniors who are practicing on direct taxes are contributing for the  development of the tax profession by way of articles, delivering lectures, authoring  books etc.<\/p>\n<p>He also  shared that as juniors they would sit in the conferences and participate in the  discussion, interact with the clients, this gives immense confidence to a  junior. When a junior is trained in a chamber, he or she will learn convention  and tradition of the profession which one will not find any of the books or  publications. <\/p>\n<p>Patil Saheb  shared with us a trait he learned from his worthy Senior Advocate Shri Sanat P.  Mehta that, when a client comes for a conference, open  the Act, read the section in their presence and then answer their query.<\/p>\n<p>Apart from  regular juniors there were large number of young lawyers and chartered  Accountants who used to meet Patil Saheb regularly for his guidance on various  academic issues.&nbsp;&nbsp; <\/p>\n<p>One of his  found memory in the chamber was when all used to have lunch together sharing  the food together.<\/p>\n<p><strong>Third lesson is that, share your knowledge and  experience, more you share your, your wealth of knowledge increases. <\/strong><\/p>\n<p><strong>4. Representation before Court <\/strong><\/p>\n<p>Once, Patil  Saheb was arguing before the Hon&rsquo;ble Bombay High Court it was relating to the  issue of partnership and taxation.<\/p>\n<p>Before Patil  Saheb could start his arguments, the Hon&rsquo;ble Judge remarked that this is an  issue relating to Partnership Act and that he had read the entire brief and  that there was no case to be made. To which Patil Saheb politely submitted, My  Lord may be right, but let me put forward my submission and then Your Lordship  may decide. After the hearing, the Hon&rsquo;ble Judge apologized to Patil Saheb for  his earlier remarks. This is an example of Patil Saheb&rsquo;s convincing ability  before the Court and in-depth knowledge of general law which Patil Saheb  acquired while practicing in Civil litigation practice before the Hon&rsquo;ble Bombay  High Court for about seven years i.e. from 1960 to 1967. Patil Saheb joined the  chamber of Advocate Shri Sanat P. Mehta in the year 1967, and was in the  Chamber up to 1972. <\/p>\n<p>In the year  1972, Patil Saheb started his independent practice. Patil Saheb is one of the  Counsel who has argued many land mark cases on direct taxes as well as indirect  taxes (Sales tax).<\/p>\n<p><strong>Fourth lesson is if one desire to excel in the  profession and to make better representation he or she should have in depth  knowledge of general law. <\/strong><\/p>\n<p><strong>5.&nbsp; Drafting skills of the petition and opinions<\/strong><strong> <\/strong><\/p>\n<p>Patil  Saheb&rsquo;s drafting skill was extraordinary. In a Sales tax matter, the Hotel  Association were to challenge certain provisions of the erstwhile law. They  consulted one of the retired Judge of the Hon&rsquo;ble Bombay High Court for, who  was earlier heading the tax Bench. Honourable Judge advised them get the  petition drafted by Patil Saheb, because the honourable judge had the  opportunity of reading some of Patil Saheb&rsquo;s petitions when the honourable  Judge headed the tax Bench. This is an example of Patil Saheb&rsquo;s ability to  draft the petition, in very precise and to the point fashion.Dr. K. Shivaram  stated that he has also seen Patil Saheb drafting  opinion and advisories with a continuous flow and without referring to any book  or paper. This shows the blessing of goddess Saraswathi on Patil Saheb. Patil  Saheb has also authored a book titled <strong>&ldquo;Principles  of Sales tax&rdquo;<\/strong> It was meant for beginners and law students.<\/p>\n<p>Patil Saheb  has written many articles papers, addressed various seminars etc and was editor  of Income-tax Review and editorial Board of several journals and magazines.<\/p>\n<p>Few days  back,Dr. K. Shivaram had the  occasion of reading a paper on the subject of <strong>&ldquo;Natural Justice&rdquo; <\/strong>which Patil Saheb had presented in the 24thRRC  of BCAS in the year 1991, even till day, it is very relevant and deals with  first principle of Natural Justice. <\/p>\n<p><strong>Fifth lesson is that, one has to develop their  writing skill.<\/strong><\/p>\n<p><strong>6.Courage to fight for upholding the honour and  dignity of the profession. <\/strong><\/p>\n<p><strong>a. Editorial  of the Journal <\/strong><\/p>\n<p>Once Patil  Saheb wrote an editorial against the corruption. At that time the Income Tax Department  was subscribing to the journal of the Chamber of Income tax Consultants. The then  Chief Commissioner called the President of the Chamber of Income Tax  Consultants and told him that, when an editorial is written it represents the  view of the Association and informed the President to request Patil Saheb to  tender an apology in the next month&rsquo;s editorial. The entire Managing committee of  the Chamber of the Income tax consultants supported Patil Saheb and assured him  that if any action is taken by the Income Tax Department, they would stand by  Patil Saheb. No action was taken by the &nbsp;Income Tax Department.&nbsp; <\/p>\n<p><strong>b. Wrong observation against a Reputed Chartered  Accountant in an order <\/strong><\/p>\n<p>One of the  senior and highly respected member of the Chartered Accountancy profession,  appeared and succeeded in the matter before the Appellate Tribunal. However, in  the text of the Order some remarks were made stating that, the Chartered  accountant misrepresented the facts. Patil Saheb requested the Chartered  Accountant to file a Miscellaneous Petition for removing (expunging) the  particular sentence from the Order. Ultimately, the rectification of the order  was made and the said sentence was expunged from the order.<\/p>\n<p><strong>Sixth lesson is that whatever may be circumstances  one should be very firm on professional ethics and no compromise should be  made. <\/strong><\/p>\n<p><strong>7.Service to humanity&nbsp; <\/strong><strong> <\/strong><\/p>\n<p>Dr. K. Shivaram stated that Patil Saheb always believed and  practiced that Service to humanity is the purpose of life. When Patil Saheb  used to go for morning walk, at 7.AM and Patil Saheb would feed the street  children regularly for number of years and used to celebrate Republic Day and  Independence Day with them. Patil Saheb has also donated substantial amount to  night school at Mumbai where the under privileged would attend the evening  classes.<\/p>\n<p>Patil Saheb used to give free advice to needy  people. Patil Saheb in one of his articles which is reported in AIFTP Journal  May, 2004 wrote as under <strong>&ldquo;The idea of  taking up a profession is not at all with a view to make lots of money, but to  render useful services to the needy ones.&nbsp;  There is a sharp distinction between a profession and a business.  Whereas in the case of business, profit motive is predominant. In the case of  the profession what is really important is rendering professional service which  is service oriented and not profit oriented.&rdquo; <\/strong><\/p>\n<p>In the said article,Patil Saheb also referred the  advice which he received from his worthy senior Advocate Shri Sanat.P. Mehta,  who described the relationship between a lawyer and his client is like trustee  and beneficiary of a trust. A Lawyer is a trustee and your client is a beneficiary  of such trust. This precious advice of his worthy senior has always remained as  a guiding star throughout Patil Saheb&rsquo;s professional career. Patil Saheb in the  last part of his article&nbsp;&nbsp; wrote as under <strong>&ldquo;Have infinite patience and success is  yours &hellip; Work, work and work only for the good of others &ndash; that is life&rdquo; <\/strong><\/p>\n<p>Patil Saheb  followed a simple life in his chamber any professionals were welcomed to visit  to discuss their personal matters or for guidance, without prior appointments.<\/p>\n<p><strong>Seventh lesson is that, service to humanity is service  to the god and the purpose of life.<\/strong><\/p>\n<p><strong>Going forward<\/strong> <br \/>\n  Going forward,  as the <a href=\"https:\/\/itatonline.org\/info\/wp-content\/uploads\/2019\/03\/Standards-of-Professional-Conduct-and-Etiquette-2019.pdf\">ITAT Bar  Association Mumbai<\/a>, ITAT Bar Association Ahmadabad and <a href=\"http:\/\/aiftponline.org\/code-of-ethics\/\">All India Federation of Tax Practitioners<\/a> have adopted a  Code of Ethics to members. Dr. K. Shivaram made an appeal to the President of  the Chamber of Tax Consultants to consider the proposal of adopting the code of  ethics to the members of the Chamber of Tax Consultants which would, in his  opinion, help the institution.<\/p>\n<p>Dr. K. Shivaram  stated that ,former Chief Justice of India, Hon&rsquo;ble Justice S.H. Kapadia (Then as  a senior Judge of Bombay High court,) when his lordship has inaugurated the  National Convention of AIFTP at Mumbai, His lordship, was  pleased upon reading the code&nbsp; of ethics  of the All India Federation of Tax Practitioners (<strong>AIF<\/strong><strong>TP<\/strong>) his  lordship&rsquo;s concluding remarks were,<strong><em>&ldquo;Mr.  Shivaram, all clauses are fine but what about Article 51A of the Constitution  of India i.e. Duty to the nation, please consider the same<\/em>&rdquo;. <\/strong>Dr. K. Shivaram  also made a request to the President, to include of Article 51A of the Constitution  of India if the Chamber is proposing to adopt the code of ethics to its  members.<\/p>\n<p><strong>Role model<\/strong><\/p>\n<p>Dr.K.Shivaram, stated  that, Patil Saheb is a role model to many professionals, and today&rsquo;s panel  discussion may inspire many young professionals to follow the value and ethics  followed by Patil Saheb. Dr. K. Shivaram, made an appeal to the President to  consider the proposal of holding a yearly lecture on 15thJuly of  every year on general subjects (Other than tax) as a respect to Patil Saheb for  the development of Tax profession and especially for the development of CTC, Mumbai. <\/p>\n<p>Dr. K. Shivaram  also requested the President, to consider publishing the writing of Patil Saheb  which are relevant to todays practice, the same could bein the form of an  e-publication or regular printed publication. It could be joint publication of  the CTC, BCAS and AIFTP or exclusive publication of the  CTC.<\/p>\n<p>Dr. K. Shivaram  expressed his gratitude to the CTC for giving him this opportunity to share the  great qualities of &nbsp;his senior Advocate  Shri V.H. Patil.<\/p>\n<p>Dr. K. Shivaram  made an appeal to pray together for good health and long life of Patil Saheb,  so that many young professionals can have the blessing and guidance of Patil  Saheb in the years to come.<\/p>\n<p><strong>Summary of the speech  of Shri Saurabh N. Soparkar, Senior Advocate.<\/strong> <\/p>\n<p>Shri Saurabh N.Soparkar,  Senior Advocate shared his great experience with Patil Saheb when he has  presented the paper to the CTC about 20 years back. <\/p>\n<p>He stated that  is yet to see an unassuming, simple and a gentleman in the profession as Patil  Saheb. Around three decades back, when he was invited for the RRC by CTC at  Lonavala, Mr. Patil welcomed him and put him at&nbsp;  ease very affectionately, which Mr. Soparkar would always remember<\/p>\n<p>He threw light  on morals &amp; acceptable behavior within the four corners of law. Ethical  challenges faced even within the four corners of law, as the same might  conflict with client&rsquo;s interest, duty towards the courts etc.<\/p>\n<p>The Bar Council  has set <a href=\"http:\/\/www.barcouncilofindia.org\/about\/professional-standards\/rules-on-professional-standards\/\">ethical  standards for lawyers<\/a> viz. towards the Court, towards the Client and  towards the other-side.<\/p>\n<p><strong>Duty towards  Court <\/strong><\/p>\n<p><em>Firstly, <\/em>a lawyer is  expected to behave in a dignified manner. <em>Secondly, <\/em>a lawyer has to  respect the Court; this has to be understood differently from being submissive  to a Judge. Where he believes that it is the duty as a lawyer to be firm on his  stand by way of submission and communicate his view to the Judge. It is  important to be respectful while communicating to the Judge.<\/p>\n<p>He explains an  incident where the counsel appearing before the Ahmedabad Tribunal on behalf of  the taxpayer cited an order a favorable order of the same Tribunal and a decision  of the Hon&rsquo;ble Bombay High Court. However, the Tribunal felt that there is an  order by the same member which has taken a contrary view, and the decision of  the Hon&rsquo;ble Bombay High Court has not considered an earlier contrary decision  of the same High Court which got approved by the Hon&rsquo;ble Supreme Court.<\/p>\n<p>Relevant  portion of the decision of the Tribunal&rsquo;s order in the case of <strong><em>Dy. CIT vs <\/em><\/strong><strong><em>Elitecore  Technologies Private Limited [2017] 80 taxmann.com 6 (Ahd) (Trib.)<\/em><\/strong>is usefully  extracted as under: <\/p>\n<p><em>&ldquo;<\/em><em>Any other  approach, he very politely tells us, would be violate fundamental principles of  judicial discipline and cannot, therefore, meet approval of Hon&#8217;ble Courts  above. He reminds us that the Tribunal decision in the case of Tata Sons  (supra) is authored by one of us and suggests, in very decorous manner- which  is his hallmark anyway, that we should not become so attached to our labour of  love that the cause of justice is sacrificed.&rdquo; <\/em><\/p>\n<p>He then  discussed a few ethical standards that a lawyer must adhere to:<\/p>\n<ul>\n<li><span dir=\"ltr\">A lawyer should not discuss the matter with the judge.<\/span><\/li>\n<li><span dir=\"ltr\">A lawyer must not be a part to any illegal action.<\/span><\/li>\n<li><span dir=\"ltr\">A lawyer should not accept brief of a client who  insists on unfair means.<\/span><\/li>\n<li><span dir=\"ltr\">A lawyer should appear in an appropriate dress code.<\/span><\/li>\n<li><span dir=\"ltr\">A lawyer is expected not to take up a brief of a  company\/ trust\/ firm of which the lawyer is a part of the management.<\/span><\/li>\n<\/ul>\n<p>However, it is  not the duty of the lawyer while citing judgement to cite decisions held  against him. On this regard, the Ahmedabad Tribunal in the case of <strong><em>Elitecore Technologies Private Limited  (Supra) <\/em><\/strong>further  held as under:<\/p>\n<p><em>&ldquo;Perhaps we  cannot hold learned counsel for the assessee responsible for this situation, as  it will perhaps be too utopian to expect such an unrealistic degree of fairness  in the conduct of the assessees. It is not for them, as they would certainly  argue, to find out every conceivable argument in support of the revenue  authorities and to demonstrate that such arguments are unsustainable in law.&rdquo; <\/em><\/p>\n<p>That said, it is the duty of the  Counsel to not cite overruled judgements. An observation of the Hon&rsquo;ble Supreme  Court in the case of <strong><em>State of Orissa vs Nalinikanta Muduli 2004 (7) SCC  19<\/em>. <\/strong>Relevant portion of the decision is usefully extracted as under:<\/p>\n<p><em>&ldquo;It is  strange that a decision which has been overruled by this Court nearly quarter  of a century back was cited by the Bar and the court did not take note of this  position and disposed of the matter placing reliance on the said overruled  decision. It does not appear that the decision of this Court reversing the  judgment of the High Court was brought to the notice of the learned Single  Judge who was dealing the matter. It is a very unfortunate situation that  learned counsel for the accused who is supposed to know the decision did not  bring this aspect to the notice of the learned Single Judge. Members of the Bar  are officers of the Court. They have a bounden duty to assist the Court and not  mislead it. Citing judgment of a Court which has been overruled by a larger  Bench of the same High Court or this Court without disclosing the fact that it  has been overruled is a matter of serious concern.&rdquo;&nbsp;<\/em><\/p>\n<p>The ethical challenge lies in a  situation where a decision is not expressly overruled rather impliedly  overruled. The Hon&rsquo;ble High Court of Bombay in the case of <strong><em>Prakash  ShrawanDeore vs Scheduled Tribe Certificate Scrutiny Committee, Nashik (2009)  (5) Mh.LJ. 228 <\/em><\/strong>observed as under:<\/p>\n<p><em>12. No doubt  that the learned AGP relied on the judgment of the Full Bench of this Court in  the case of Shilpa Thakur (supra) that the claim cannot be decided only on the  basis of the documentary evidence but the affinity test also plays an important  role. However, it is to be noted that the judgment of the Full Bench in the  case of Shilpa Thakur is dated 7th May, 2009, whereas the judgement of Anand  Kathole is delivered by the Hon&#8217;ble Apex Court on 8 th November, 2011. In the  case of Rashmi Metaliks Limited and anr. vs. Kolkata Metropolitan Development  Authority and ors. 5, the Hon&#8217;ble Apex Court has frowned upon the practice of  lawyers citing multiple judgments in support of a proposition of law. Any  sincere student of law, leave aside a practising lawyer, who has put a number  of years at the bar, is expected to know that the judgment of High Court,  including the judgments delivered by the Full Bench, which has taken a view,  which is contrary to the view taken by the Hon&#8217;ble Apex Court, subsequently,  the earlier judgment stands impliedly over-ruled. We do not understand the  propriety in citing the judgment which is impliedly over-ruled.<\/em><\/p>\n<p>Therefore, the Hon&rsquo;ble High Court has  clarified that even impliedly overruled judgements cannot be cited. Therefore,  as a duty the Court it would be advisable to disclose the fact of an order  which is possibly impliedly overruled and then distinguish it. This would not  only be a display of your honesty and duty towards the court but also  tremendously improve a counsel&rsquo;s face value.<\/p>\n<p><strong>Duty towards the Clients<\/strong><\/p>\n<p>A lawyer argues the matter as a  representative of the Client. Therefore, he owes his first duty to put side any  personal convictions, personal views should not interfere with professional  duties. A lawyer should accept all cases, irrespective of the nature of the  case, otherwise the lawyer would be failing in his professional obligation and  professional ethics. <\/p>\n<p>Further a lawyer is duty bound to make  full disclosure, not to supress evidence, he\/she must uphold client&rsquo;s interest.  A lawyer may not be supressing the facts and he\/she is not duty bound to bring  out facts which are against their client&rsquo;s interest.<\/p>\n<p>With respect to be risky tax planning  for a Client, would be to bring out all the facts, to explain the upsides and  downsides, and then leave the strategy making to the Client. The ethical  component is only with respect to disclosure. <\/p>\n<p>Similarly, at an instance where the  counsel believes further proceedings are futile on the basis of merits. Again,  ethical component is only with respect to disclosure to the Client, with  respect to the merit. Ethics does not require a counsel to convince the Client  to opt in or opt out of the appeal. This issue is pertinent while evaluating  for the <a href=\"https:\/\/www.incometaxindia.gov.in\/news\/direct-tax-vivad-se-vishwas-act-2020.pdf\"><strong>Direct Tax Vivad Se Vishwas Act, 2020<\/strong><\/a>.&nbsp; <\/p>\n<p>In a situation where a matter&rsquo;s outcome  in the interest of your client would adversely affect another&rsquo; client&rsquo;s  interest in another case. In another situation, where the Client consults,  doesn&rsquo;t pay for your services and approaches another advocate to file a case;  could the unpaid counsel take up the matter as an opposing counsel in the same  case.<\/p>\n<p>The Hon&rsquo;ble Supreme Court in the case  of <strong><em>R. Muthukrishnan vs The Registrar General of The High Court of Madras (2017)  SCC OnLine SC 1791<\/em><\/strong>has observed as under:<\/p>\n<p><em>&ldquo;23. The role  of Lawyer is indispensable in the system of delivery of justice. He is bound by  the professional ethics and to maintain the high standard. His duty is to the  court to his own client, to the opposite side, and to maintain the respect of  opposite party counsel also. What may be proper to others in the society, may  be improper for him to do as he belongs to a respected intellectual class of  the society and a member of the noble profession, the expectation from him is  higher. Advocates are treated with respect in society. People repose immense  faith in the judiciary and judicial system and the first person who deals with  them is a lawyer. Litigants repose faith in a lawyer and share with them  privileged information. They put their signatures wherever asked by a Lawyer.  An advocate is supposed to protect their rights and to ensure that untainted  justice delivered to his cause.<\/em><\/p>\n<p><em>24. The high  values of the noble profession have to be protected by all concerned at all  costs and in all the circumstances cannot be forgotten even&nbsp;by the  youngsters in the fight of survival in formative years. The nobility of legal  profession requires an Advocate to remember that he is not over attached to any  case as Advocate does not win or lose a case, real recipient of justice is  behind the curtain, who is at the receiving end. As a matter of fact, we do not  give to a litigant anything except recognizing his rights. A litigant has a  right to be impartially advised by a lawyer. Advocates are not supposed to be  money guzzlers or ambulance chasers. A Lawyer should not expect any favour from  the Judge and should not involve by any means in influencing the fair decision&shy;  making process. It is his duty to master the facts and the law and submit the  same precisely in the Court, his duty is not to waste the Courts&#8217; time.<\/em><\/p>\n<p><em>25. It is  said by Alexander Cockburn that &ldquo;the weapon of the advocate is the sword of a  soldier, not the dagger of the assassin&rdquo;. It is the ethical duty of lawyers not  to expect any favour from a Judge. He must rely on the precedents, read them  carefully and avoid corruption and collusion of any kind, not to make false  pleadings and avoid twisting of facts. In a profession, everything cannot be  said to be fair even in the struggle for survival. The ethical standard is  uncompromisable. Honesty, dedication and hard work is the only source towards  perfection. An Advocate conduct is supposed to be exemplary. In case an  Advocate causes disrepute of the Judges or his colleagues or involves himself  in misconduct, that is the most sinister and damaging act which can be done to  the entire legal system. Such a person is definitely deadwood and deserves to  be chopped off.<\/em><br \/>\n    <em>&hellip;<\/em><br \/>\n    <em>40. &hellip;<\/em><br \/>\n    <em>A lawyer is  supposed to be governed by professional ethics, professional etiquette and  professional ethos which are a habitual mode of conduct. He has to perform  himself with elegance, dignity, and decency. He has to bear himself at all times  and observe himself in a manner befitting as an officer of the Court. He is a  privileged member of the community and a gentleman. He has to mainsail with  honesty and sail with the oar of hard work, then his boat is bound to reach to  the bank. He has to be honest, courageous, eloquent, industrious, witty and  judgmental.&rdquo;<\/em><\/p>\n<p>A lawyer has an onerous obligation  &amp; challenging task but an interesting life. The Hon&rsquo;ble Delhi HC held that  citing an overruled judgement is contempt of court only of there is an element  of malice and intention to mislead the court.<\/p>\n<p><strong>Summary of the speech  of CA. Jayant P. Gokhale . <\/strong><\/p>\n<p>He considers  Patil Saheb as a <em>Guru <\/em>who laid the standard of conduct and taught us  valuable life lessons, that he is forever indebted. Patil Saheb nurtured this  organization and it is good to see the heights it has reached.<\/p>\n<p>He shared his  experience with Patil Saheb two decades ago, when Patil Saheb appeared before  the Disciplinary Committee of the Institute of Chartered Accountants of India,  when he was the member of the Committee. During the break, Patil Saheb asked  him to perform his duty towards the chair he was holding. Patil Saheb never  discussed the matter until the Order was pronounced. Subsequently, the Order  was held against Patil Saheb&rsquo;s Client; which was overturned at the appellate  stage.<\/p>\n<p>From Holy texts  such as the Bhagwat Gita, two topics on ethical challenges viz Detachment to the  field i.e. <em>Nishkam  Karma, <\/em>and that  ethical challenges are faced by everyone. The Bhagwat Gita itself starts with  the dilemma faced by Arjun and the guidance provided by Lord Krishna.<\/p>\n<p>As of July 1, 2020, ICAI has introduced a <a href=\"https:\/\/www.icai.org\/post\/applicability-revised-edition-code-of-ethics\">new code of ethics<\/a>, referred to as the revised code of  ethics. Given the amount of literature a profession has to read &amp; refer to,  such guidelines are easily overlooked and there is always a presumption to  whatever is being done is ethical. He believes that a code of conduct is a  minimum standard of norms to be followed by consultants. Further he said beyond  this, there is always the personal conscious that needs to be clear and not  clouded. <\/p>\n<p>Further, on technical grounds certain  loopholes can be found to escape violation under the code of ethics. The level  of ethical norms to be followed is individualistic and subjective.<\/p>\n<p>Discussing some of salient features and  amendment brought in the Code of Ethics are:<\/p>\n<ul>\n<li><span dir=\"ltr\">With respect to <\/span>NOC and method of communication<\/li>\n<li><span dir=\"ltr\">Volume 1 of the Code deals with the Principles, Volume 2  pertains to the regulatory and procedural aspects, and Volume 3 is a case law  reference.<\/span><\/li>\n<\/ul>\n<p>Another issue that concerns  professionals is with whether they should focus on performing the duties  towards their Clients or delivering success to their Clients. Self-interest is  a threat to the code of ethics i.e. the fees should not have any nexus with the  success. Self-review threat for those performing an attest function; one cannot  take a different stand as an auditor and another as a return preparer, it will  hamper his independence. Familiarity threat, while having interested parties or  familiar parties as a client or as an authority. The same is subjective and has  to be evaluated by oneself. Finally, there is the intimidation threat i.e. when  thethere is an influencing factor which affects one&rsquo;s judgement. <\/p>\n<p>Unlike Lawyers, Chartered Accountants  do not have immunity in terms of client confidentiality. The new code of  conduct deals with this issue. Therefore, it is important to evaluate the  nature in which such details have been discovered by the auditor.<\/p>\n<p>Advocate Mr. K.  Gopal moderator of the technical session shared his  experience with Patil Saheb and the encouragement which he got from Patil Saheb.<\/p>\n<p><strong>Questions  &amp;Answers with the Panel<\/strong><\/p>\n<p><strong>Question<\/strong>: What do you  understand by ethical challenges?<\/p>\n<p><strong>Answer<\/strong>: Something  which is legally permissible but restricted by moral consciousness.<\/p>\n<p><strong>Question<\/strong>: There is a  perception that to become a successful professional, ethics is a stumbling  block.<\/p>\n<p><strong>Answer<\/strong>: It is  important to define &lsquo;success&rsquo;, in the event it is defined in monetary terms,  ethics would not bring you the same amount of money as much a <em>dalal<\/em> would. Unethical practices might make you some money, but would that be  considered as success or a greed. A successful-ethical person would never be  ashamed of any deed done by them in the past. The ethical norms are a shield  and not a sword. <\/p>\n<p><strong>Question<\/strong>: What matters  more, the quality of the services or the outcome of the services?<\/p>\n<p><strong>Answer<\/strong>: As a lawyer  it is important to act in the best interest of your client. However, the  outcome is in the hands of a 3rd person. Therefore, the outcome is  immaterial. A detachment needs to be maintained.<\/p>\n<p>From an Audit  perspective, success and failure are subjective. What is right according to you  may not be so to the regulatory authorities and vice versa. It is the reasoning  and justification to your answer that hold value. Therefore,the outcome should  not be focused upon at all.<\/p>\n<p><strong>Question<\/strong>: While working  in large firms as a group, one becomes a part of the organization. There is no  personal opinion rather one works in the interest of the firm, sometimes  compromising on their ethical values.&nbsp;&nbsp; <\/p>\n<p><strong>Answer<\/strong>: It is  important to have an organizational policy and the same should be made keeping  in mind the ethical standards. Blind targets should not be made and targets  should be achieved ethically.<\/p>\n<p><strong>Question<\/strong>: Role of  visiting cards vis-&agrave;-vis code of ethics<\/p>\n<p><strong>Answer<\/strong>: In the event  the counsel is approached by a second party, who requests for the counsel&rsquo;s  visiting card. The same is not equivalent to a counsel going to a trade seminar  and distributing his\/her business card, and trying to solicit work. The latter  is unethical.<\/p>\n<p>There are  different ways of projecting your skills and knowledge i.e. by delivering  lectures etc. However, it should be done with a view to solicit clients.<\/p>\n<p><strong>Question<\/strong>: Should ethics  be codified or inherent in a person?<\/p>\n<p><strong>Answer<\/strong>: A code is  necessary to avoid ambiguity. A code is the beginning and not the end. The  values have to be built on the code.<\/p>\n<p><strong>Question<\/strong>: Will  non-receipt of audit fee for more than a year affect the auditors independence<\/p>\n<p><strong>Answer<\/strong>: As per the  new code the same can be construed to affect independence. However, it doesn&rsquo;t  expect the Auditor to immediately cease the work. The work can be performed and  then reviewed by an unaffected third party. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n<p><strong>Question<\/strong>: What if the  court asks the counsel to update them with the position of law?<\/p>\n<p><strong>Answer<\/strong>: When the  court expects a counsel to do so, he has to take the role of an <em>amicus curie<\/em> and not a counsel for the party. He needs to perform his duty towards the court  and cite all the judgements to the best of his knowledge. In his submissions  for the Client, he is at will to distinguish the cases and exhibit its  non-applicability. <\/p>\n<p><strong>Question<\/strong>: Are they  abetting in crime, while structuring murky tax plantings?&nbsp; <\/p>\n<p><strong>Answer<\/strong>: As long as  there is no element of illegality, there should be no ethical problem. Advising  a Client on <em>Havala<\/em> transactions or Bogus share capital, then the  consultant has engaged in unethical practice.<\/p>\n<p><strong>Question<\/strong>: Does a lawyer  require to retain a copy of his advisory?<\/p>\n<p><strong>Answer<\/strong>: No<\/p>\n<p>While Concluding,  Mr. Anish Thacker President of the CTC also thanked Advocate Mr. Keshav Bhujle who  was instrumental in arranging this program.<\/p>\n<p><strong>Editorial Note<\/strong>: Summary  of the lecture is prepared by Advocate Mr. Shashi Bekal, Advocate, Mumbai for  the benefit of Young lawyers, Chartered Accountants, law students and tax  consultants who desire to develop tax litigation practice.<\/p>\n<p><strong>Source: <\/strong>We acknowledge CTC for organizing a lecture on the subject of <strong>&ldquo;Ethical  Challenges faced by Professionals in today&rsquo;s world&rdquo; &#8211; A Panel discussion. The  video recording of the session can be viewed at the link <\/strong><a href=\"https:\/\/youtu.be\/CLHZaHTqUEw\">https:\/\/youtu.be\/CLHZaHTqUEw<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>15th July 2020 marked the 84th birthday of Advocate Shri V.H.Patil (Born on July 15, 1937) who is one of the eminent tax counsel, known for professional ethics and integrity. Shri V. H. Patil is mentor for many professionals, hence the new energetic Membership &#038; Public Relations Committee of Chamber of Tax Consultants (CTC chaired by CA Nishtha Pandya with Co-Chairman, CA Premal Gandhi  arranged a virtual panel discussion on the subject of \u201cEthical Challenges faced by Professionals in today\u2019s world\u201d<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/ethical-challenges-faced-by-professionals-in-todays-world-a-panel-discussion\/\">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-15187","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\/15187","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=15187"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/15187\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=15187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=15187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=15187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}