Fake tax audits

SSG (1936 Points)

02 February 2013  

As per ICAI President message in Feb. 2013 Journal:-


"We had received the data on tax audit reports e-filed
during 2011-12 to ascertain the misuse of membership
numbers. Consequently, we recently submitted the
details of fake and deceased memberships to the CBDT
for appropriate action. We have reported that 652
membership numbers quoted by the assessees in ereturns
do not subsist at all. Also, 2,503 tax audits have
been conducted using the fake membership. 311 out of
652 membership numbers belong to the deceased who
passed away before 31-3-2011. 759 out of 2,503 tax
audits were conducted using the identity of the
deceased members."


Of course there will be many cases where membership no. of a member holding CoP is mentioned, but the tax audit may not have been conducted by that CA.

Also it will be good if ICAI can come up with the data on the following:-

1. Highest No.s of Tax Audits done by a single member.

2. Highest No. of Tax Audits done by a single CA firm.

3. Members holding CoP, who haven't signed a single tax audit report, despite having CoP through out the financial year.

For the said year, ICAI and Income Tax Department can send the details of tax audits mentioned in the returns, to the respective member for verification.