15 September 2011
AS A TAX AUDITOR OF THE INDIVIDUAL U ARE REQUIRED TO PREPARE THE TAX AUDIT REPORT OF THE SAME AND FILE THE RETURN OF THE SAME BUT DURING THE ASSESSMENT OF THE RETURN BY IT DEPT IT WAS FOUND THAT ASSESSEE HAS EVADED TAX AND HELD RESPONSIBLE TO PAY PENALTY TAX ETC BUT MY QUERY IS THAT WHY ONLY ASSESSEE IS HELD RESPONSIBLE AND WHY NOT TAX AUDITOR WHO HAS VERIFIED HIS ACCOUNTS AND HELPED IN SOME WAY OR OTHER TO DO SO? PLZ ELLABORATE
Very good question you have asked. The assessee alone responsible for his income, he has signed the IT return in the verification column. eventhough the auditor audited the accounts, the assessee has to verify the whole ITR preparations towards his income, expenditure and others. finally, the auditor certify that "The true and fair auditing has done with the records and accounts submitted by the assessee". Thus the assessee has solely responsible and liable to the tax not the auditor.
16 September 2011
The expert has correctly given your reply. In addition to the same I would like to add the following
The client has not brought to evasion in the knowledge of the auditor.
The auditor has limited sources of collecting information whereas the Income tax department has all door open to collect information.
Now a days every transaction is reported in AIR which is not available with the auditor.
Yes I agree with you if the client has given all the information about evasion and even then the auditor has not taken care of it then the action can be taken against the auditor by filing disciplinary case against him before ICAI
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