Does ICAI need to wake up from the hibernation....................?
to raise standard within practice, as we can see now a day’s various courts
judgements are indicating that the C A’s are not well knowledgeable or well equipped
or updated in the fields they are practising
or they are not giving importance to
value addition or is there anything which is stopping them. Recently we get to
know the one of judgement passed by ITAT Mumbai indication the deterioration in
profession or lack of knowledge.
ICAI need to do to something otherwise in near future CA’s
even not allowed to practice in their well known filed i.e. Auditing and that field
will also be taken over by some other Professionals.
Judgement is given below as It Is .......
ITAT
laments severe fall in standards of CA profession. Advices ICAI to take
disciplinary proceedings against erring members & tackle issue on war
footing
The assessee filed appeals
for AY 1994-95 & 1996-97 which were delayed by 2984 days. In support of the
application for condonation of delay, the assessee claimed that his CA, M/s
Rajesh Rajeev Associates, had advised him that as he had already filed an appeal
for AY 1993-94 on the same point, which was pending before the Tribunal, he
need not file appeals for AYs 1994-95 & 1996-97 and, instead, he could,
after adjudication of the appeal for AY 1993-94 by the Tribunal, move a
rectification application before the AO to bring the assessment order in
conformity with the decision of the Tribunal. The CA filed an affidavit in
which he confirmed having given the said advice. In the condonation
application, the assessee pleaded that he ought not to be made to suffer for
the “incorrect” advice given by the CA. HELD by the Tribunal dismissing the
application and the appeals:
(i) The advice given by the
CA firm shows signs of deteriorating standards with some of the Chartered
Accountants in profession, which needs to be stopped on war footing by the
ICAI. The assessee is having connection with many tax professionals and, in all
probabilities, the assessee might have had consultation with any one or more of
them on the impugned problem. It is inconceivable that all the Chartered
Accountants, whom the assessee might have had consultation or availed services,
would have concurred with the view expressed by the above said C.A firm. If it
is presumed for a moment that all the C.A.s have concurred with the said view,
then it only shows that the C.A profession is losing its grip over the Income
tax matters, which is another cause of concern for ICAI. The self study model
coupled with ‘on-site articled clerk training’ embedded in the Chartered
Accountancy course aims to achieve high quality education and training through
undergoing practical training, inculcating the habit of thinking, self
introspection, application of mind, analytical ability etc. and they enable the
C.A students to have strong grip over the subjects and also to attain expertise
in them… In the recent past, the methodology of self study is given a go-by by
some C.A students and they have started depending more and more on the
Commercial Coaching Centers, who undertake coaching of various subjects in the
class room model. We notice that the ICAI does not appear to have taken steps
to contain mushrooming growth of such coaching institutes, which indulge in
manufacturing of Chartered Accountants through class room model, which may
ultimately have undesirable effect on the quality of Chartered Accountants,
since the habit of thinking, introspection, application of mind is replaced by
spoon-feeding, which kind of teaching discourages independent thinking. There
should not be any controversy on the fact that the Chartered Accountants, till
date, have occupied pioneer position vis-à-vis their counterparts in other
parts of the World. They also contribute a lot to the building, sustenance and
growth of our National economy. Any compromise on the quality of Chartered
Accountants would not only affect our Country very badly, but is also expected
to endanger the pioneer position enjoyed by the Indian C.A fraternity vis-à-vis
their counter parts in other parts of the world. In our view, the ICAI should
seriously take note of these alarming practices slowly emerging in our Country
and should take appropriate corrective steps, lest the confidence reposed in
C.A.s by the public should get diluted;
(ii) In this back ground,
in our view, the above said C.A. firm would have given the letter as well as
the affidavit only to accommodate the assessee herein. We would like to mention
here that we have come to such a conclusion, since a qualified C.A. firm would
not commit such kind of silly mistakes while giving expert professional advice.
If the C.A. firm has so accommodated the assessee, without even realising that
it is detrimental to its reputation, then the conduct of the C.A. firm needs to
be condemned strongly. In that case, we are of the view that the above said
conduct of the C.A. firm not only denigrates its name/ reputation, but also
badly affects the high standards, confidence, quality, prestige, reputation
etc. enjoyed by the C.A. profession;
(iii) The advice claimed to
have been given by M/s Rajesh Rajeev Associates, Chartered Accountants, if
considered to have been really given, would create doubt about the efficacy of
the CPE programmes, since such kind of advices is not expected from a
Professional. Further these kind of advices claimed to have been given by a C.A
firm clearly give signals that the CPE programmes might have failed to achieve
the desired objectives with some of the Chartered Accountants. It is high time
that the ICAI should take note of these practicalities and should take
corrective steps in order to maintain/restore the high standards and quality
expected from a C.A. professional. We have also expressed the view that the
above said C.A firm might have given the affidavit only to accommodate the
assessee, which conduct is also not expected from a Professional. If it is
considered that the C.A firm has colluded with the assessee for giving such
kind of affidavit, then it only warrants disciplinary action against them.
Even, if it is considered that the said C.A. firm has really given such
advices, then also it may require disciplinary action against them for giving
such kind of advices, without proper verification of facts and without proper
consideration of law. In our view, 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 of the Chartered Accountants.
