ICAI president meets finance minister reg extension of due date

CA. Manoj Fadnis, President, ICAI, CA. Anuj Goyal, Chairman, Professional Development Committee, along with Chairman, Direct Taxes Committee, Vice-Chairman, Direct Taxes Committee, Vice Chairman, Committee on International Taxation, met and represented before Hon’ble Finance Minister Shri Arun Jaitley on 22nd September,2015 on the following two issues:

i. For extension of due date for filing returns of income and tax audit reports falling due on 30th September, 2015; 

ii. In respect of system of appointment of Central Statutory Auditors and Branch Statutory auditors of Public Sector Banks.

I. Extension of due date for filing returns of income and tax audit reports:

On consideration of the requests received from members at large seeking extension of due date of filing return of income as well as the tax audit report under section 139 of the Income-tax Act, 1961 falling due on 30th September, 2015, the following representations have been made by the Direct Taxes Committee of ICAI:

• ICAI/DTC/2015-16/Rep - 20 dated 10th July, 2015
• ICAI/DTC/2015-16/Rep - 22 dated 20th Aug, 2015
• ICAI/DTC/2015-16/Rep - 23 dated 7th Sep, 2015
• ICAI/DTC/2015-16/Rep - 24 dated 14th Sep, 2015

A power point presentation by the Direct Taxes Committee of ICAI was presented & a fervent appeal was made out in support of the case for extension of due date of return as well as tax audit report from 30th September, 2015 to 31st October, 2015.

Hon’ble Finance Minister has assured to look into the matter. However, in the absence of any concrete decisions so far, the esteemed members of the profession are advised to put in their best efforts to comply with the prescribed due date i.e. 30th September, 2015. 

II. In respect of system of appointment of Central Statutory Auditors and Branch Statutory Auditors of Public Sector Banks:

The ICAI representatives explained the inadequacies arising out of the current procedure of appointment of Central Statutory Auditors and Branch Statutory Auditors of Public Sector Banks (PSBs). It was mentioned that the managerial autonomy is correct to the extent of day to day decisions making but nowhere the authority to appoint the auditor lies with the persons whose decisions are to be audited. Such delegation in the long run is a great peril to the economy itself. ICAI recommended that appointment of Central Statutory Auditors and Branch Statutory Auditors of Public Sector Banks (PSBs) may be done either by Reserve Bank of India or the C&AG or any other such independent authority. 

The Hon’ble Finance Minister has noted the concerns of the ICAI and has assured to look into the matter. 

The above communication is to keep the members apprised of the position in the backdrop of the concerns being raised.