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Burning Question : Article liable for his work done in offic

A____ __A (Student All-ways) (275 Points)

23 May 2010

One of my friend made mistake in ITR by not considering FD income amounting to rs. 1.5 lac ...the case fall in scruitiny and now her principal is asking her to pay ( in Rs.) additional tax on 1.5 lac ..

so i want to know weather article assistant can be held liable for their work done ?

if yes that what is requirment of AS " worked perform by others " which a CA should perform?

Please reply..

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40 Replies

HITESH (chartered accountant) (441 Points)
Replied 23 May 2010

definitely an article assistant will not be liable

auditor will be liable for that work

before signing the return , he must see everything and sign it. when there is nothing contrary

A____ __A (Student All-ways) (275 Points)
Replied 23 May 2010

Thanks Mr Hitesh but i am not talking in terms of Audit i am talking about general " Chillar " work that we perform daily like filling & Preparing ITR , TDS Return , 16A , Service Tax & Vat R

Vikram Soni (Student) (103 Points)
Replied 23 May 2010

you right article will not be liable......

santhosh (CA) (636 Points)
Replied 23 May 2010

No way ! Article is not liable ask her to file a case against her Principal. He/She will liable for Professional Misconduct.

A____ __A (Student All-ways) (275 Points)
Replied 23 May 2010

Justify Me : Get paid Rs 1500/- ( Maximum ) and take responsibilities of Thousands of rupees ...

(False PAN = 10,000 rs = 6.67 months of Stipend )

santhosh (CA) (636 Points)
Replied 23 May 2010

Principal is a CHARTERED ACCOUNTANT, he must have checked any document / report / papers before he signs it. If he is casual in signing the report trusting a Budding CA ,Errors are sure to occur and for that The article cannot be made liable.This is because errors are caused by ignorance ,there is no deliberate act involved here.

But if the error is so silly like not filling PAN properly or quoting Wrong PAN / Such non common errors .If this is the case then,i dont support the article because it is not necessary for principal to check whether date has been put properly or PAN has been quoted Properly. One can very well assume that Juniors would have done them correctly.

M. N. JHA (CA) (8316 Points)
Replied 23 May 2010

Both article and employer is not responsible for that but assessee is liable for that mistake occuer in itr.

RAKESH (Almost CA) (2199 Points)
Replied 23 May 2010

article is not liable... auditor is responsible.

M. N. JHA (CA) (8316 Points)
Replied 23 May 2010

Originally posted by : RAKESH
	article is not liable... auditor is responsible.

AUDITOR ???? mistake happen in ITR

CA.Pravinchandra (Executive (F&A)) (2387 Points)
Replied 23 May 2010

Originally posted by : santhosh
	No way ! Article is not liable ask her to file a case against her Principal. He/She will liable for Professional Misconduct.

Article is not responsible..

Varun.T.K (CA Final, CS Executive) (365 Points)
Replied 23 May 2010

How can a qualified chartered accountant allege such a claim?

Whatever be the mistake, he is the only one responsible for the same. He can't prove otherwise in any court of law.

Gaurav Kapoor (student Final) (205 Points)
Replied 23 May 2010

Article is never liable guys for such mistakes since principal is required to check every thing each n every detail before submition......

Pallavi Mhatre (SERVICE) (26 Points)
Replied 23 May 2010

Interesting... Article as well as CA wont be liable... Individual return is signed by particular individual in whose name return is being filed..... He certifies that information given is true to best of his knowledge ...! so he has to satisfy himself before signing ... Later cannot make CA liable for his work....

1 Like

YASH JAIN (ARTICLE) (554 Points)
Replied 23 May 2010

Hey yaar please tell ca to refer the auditing standards which clearly specify that ca is liable for work done by others . But he must have reason to believe that work was done in good faith.