ITAT advises ICAI to take disciplinary proceedings against erring members and laments severe fall in standards of CA profession

Last updated: 09 September 2014

Court :
ITAI Mumbai

Brief :
The appeals filed by the assessee for AY 1994-95 and 1996-97 were delayed by 2984 days. The assessee claimed that he was advised by his CAM/s Rajesh Rajeev Associatesthat since he had already filed an appeal for AY 1993-94 which was pending before the Tribunal, he need not file appeals for AYs 1994-95 & 1996-97 and that a rectification application can be filed before the AO after adjudication of appeal for AY 1993-94 by the Tribunal. Also the CA confirmed through an affidavit that he had given such advice. The assessee pleaded that he need not suffer from the incorrect advice by the CA. Held that the advice given by the CA firm shows signs of deteriorating standards with some CAs in profession, which needs to be stopped on war footing by ICAI. If it is considered that the said C.A. firm has really given such advices, it may require disciplinary action for giving such kind of advices, without proper verification of facts and proper consideration of law. Strict actions and fast disposal of disciplinary proceedings would not only instill discipline among the C.A fraternity, but also help curtail these kind of undesired practices adopted by some CAs.

Citation :
Shri Vijay V Meghani – Appellant – Versus – Dy. Commissioner of Income Tax – Respondent