CA can conduct only 60 Tax Audits , Supreme Court upholds ICAI’s regulation
Carrying out compulsory tax audit under Section 44AB of the Income Tax Act,1961 is a ‘privilege’ & not a ‘right’ of a CA, the limit of 60 tax audits imposed by ICAI on every CA is to be upheld as it does not curtail the fundamental right of a CA to practice his profession
| (a) | Clause 6.0, Chapter VI of the Guidelines dated 08.08.2008 and its subsequent amendment is valid and is not violative of Article 19(1)(g) of the Constitution as it is a reasonable restriction on the right to practise the profession by a Chartered Accountant and is protected or justifiable under Article 19(6) of the Constitution. | |
| (b) | However, the said clause 6.0, Chapter VI of the Guidelines dated 08.08.2008 and its subsequent amendment is deemed not to be given effect to till 1-4-2024. | |
| (c) | Consequently, all proceedings initiated pursuant to the impugned Guideline in respect of the writ petitioners and other similarly situated Chartered Accountants stand quashed. | |
| (d) | Liberty is reserved to the respondent-Institute to enhance the specified number of audits that a Chartered Accountant can undertake under Section 44AB of the IT Act, 1961, if it deems fit. | |
| (e) | Liberty is also reserved to the writ petitioners or any other member of the respondent-Institute to make a representation in the above context which may be taken into consideration in the event respondent-Institute intends to amend the Guideline as per point No.(d) above. | |
| (f) | The writ petitions as well as all the transferred cases are disposed of in the aforesaid terms. |
SUPREME COURT OF INDIA
Shaji Poulose
v.
Institute of Chartered Accountants of India
B. V. NAGARATHNA AND AUGUSTINE GEORGE MASIH, JJ.
TRANSFERRED CASE (CIVIL) NO. 29 OF 2021
WRIT PETITION NOS. 267 & 272 OF 2021 & OTHS..
WRIT PETITION NOS. 267 & 272 OF 2021 & OTHS..
MAY 17, 2024