Thursday, August 29, 2013

Spl. for CAs, BLs (LLBs); et al

Top- uP

TG

 ICAI initiative on ITAT remark on CA profession and& functions of ICAI

 

 

 

BL

Getting the best out of consultants

 ???????

 

 

TG

July 6


Conversion To LLP - Capital gains to be computed on book value of assets transferred & not on market value

 

At the first blush, subject to an independent study in-depth, the point of controversy as settled by the first appellate authority is noted to essentially bring to the fore one important thing: The extant applicable provisions gone into by the itat are not so clear as to lend scope for a straightforward reading and intelligible interpretation of the law. As such, the matter,it is anybody’s guess as to what view would be finally taken, if, as is likely,pursued in further proceedings. No need to add that,now it is in the representing counsels’ court to put up all possible pleas only after making an incisive study, in order to ensure that the final opinion eventually handed out, by any yardstick, comes to prove a logically right or better view,in its profound sense.
Meanwhile, it is worthwhile for the law and finance ministries to probe into and decide how best the extant provisions could be modified so as to bring about clarity; as that should save from a protracted litigation and be for the common good.
- See more at: http://taxguru.in/income-tax-case-laws/conversion-llp-capital-gains-computed-book-assets-transferred-market.html#sthash.MIlQUb2Z.dpuf
At the first blush, subject to an independent study in-depth, the point of controversy as settled by the first appellate authority is noted to essentially bring to the fore one important thing: The extant applicable provisions gone into by the itat are not so clear as to lend scope for a straightforward reading and intelligible interpretation of the law. As such, the matter,it is anybody’s guess as to what view would be finally taken, if, as is likely,pursued in further proceedings. No need to add that,now it is in the representing counsels’ court to put up all possible pleas only after making an incisive study, in order to ensure that the final opinion eventually handed out, by any yardstick, comes to prove a logically right or better view,in its profound sense.
Meanwhile, it is worthwhile for the law and finance ministries to probe into and decide how best the extant provisions could be modified so as to bring about clarity; as that should save from a protracted litigation and be for the common good.
- See more at: http://taxguru.in/income-tax-case-laws/conversion-llp-capital-gains-computed-book-assets-transferred-market.html#sthash.MIlQUb2Z.dpuf
  1. the point of controversy as settled by the first appellate authority is noted to essentially bring to the fore one important thing: The extant applicable provisions gone into by the itat are not so clear as to lend scope for a straightforward reading and intelligible interpretation of the law. As such, the matter,it is anybody’s guess as to what view would be finally taken, if, as is likely,pursued in further proceedings. No need to add that,now it is in the representing counsels’ court to put up all possible pleas only after making an incisive study, in order to ensure that the final opinion eventually handed out, by any yardstick, comes to prove a logically right or better view,in its profound sense.
    Meanwhile, it is worthwhile for the law and finance ministries to probe into and decide how best the extant provisions could be modified so as to bring about clarity; as that should save from a protracted litigation and be for the common good.
- See more at: http://taxguru.in/income-tax-case-laws/conversion-llp-capital-gains-computed-book-assets-transferred-market.html#sthash.rWtI7UUH.dpuf
  1. the point of controversy as settled by the first appellate authority is noted to essentially bring to the fore one important thing: The extant applicable provisions gone into by the itat are not so clear as to lend scope for a straightforward reading and intelligible interpretation of the law. As such, the matter,it is anybody’s guess as to what view would be finally taken, if, as is likely,pursued in further proceedings. No need to add that,now it is in the representing counsels’ court to put up all possible pleas only after making an incisive study, in order to ensure that the final opinion eventually handed out, by any yardstick, comes to prove a logically right or better view,in its profound sense.
    Meanwhile, it is worthwhile for the law and finance ministries to probe into and decide how best the extant provisions could be modified so as to bring about clarity; as that should save from a protracted litigation and be for the common good.
- See more at: http://taxguru.in/income-tax-case-laws/conversion-llp-capital-gains-computed-book-assets-transferred-market.html#sthash.rWtI7UUH.dpuf

JUNE 30

 

 Why Tax Practitioners Bill Required For India?

 

June 16 

 

more 'innovative' ideas from iCAI

 

  Increase Basic Service Tax Exemption Limit to Rs. 25 Lakh


 

prev.

 

 ‘Aggregated TDS Compliance’ at PAN level for all TANs associated with referenced PAN

 

bs

The right to be forgotten

The process to enforce it will be difficult and delicate

 

  cA CLUB

Decision of the ICAI Central Council regarding various Malicious Emails being received by ICAI and its functionaries.


june 13

 ICAI to take action against CAs spreading Malicious information against Institute and/ or its members

 

 ICAI suggests Verification of all income-tax returns by Professionals

  < ??????

<< In the published article – Finance Bill, 2006 -IMPROVING TAXPAYERS SERVICE – A Study ((2006) 151 Taxman 295) , one of the connected matters briefly touched upon relate to the implications of rule 12A of the IT Rules. The duties /responsibilities of CAs authorized to render service to taxpayers by way of assisting them in preparing tax returns, as focused on, are onerous in nature. Should, as pointed out, the said rule be modified to render it comprehensive, foolproof and purposeful enough, in one’s perception, that itself might go a long way in eventually accomplishing the same outcome the august professional body seems to,- have had in mind/be its dream.

Now, over to the Experts for an intensive deliberation.
- See more at: http://taxguru.in/income-tax/icai-suggests-verification-incometax-returns-professionals.html#sthash.juU3B5AC.dpuf
To add: In the published article – Finance Bill, 2006 -IMPROVING TAXPAYERS SERVICE – A Study ((2006) 151 Taxman 295) , one of the connected matters briefly touched upon relate to the implications of rule 12A of the IT Rules. The duties /responsibilities of CAs authorized to render service to taxpayers by way of assisting them in preparing tax returns, as focused on, are onerous in nature. Should, as pointed out, the said rule be modified to render it comprehensive, foolproof and purposeful enough, in one’s perception, that itself might go a long way in eventually accomplishing the same outcome the august professional body seems to,- have had in mind/be its dream.
Now, over to the Experts for an intensive deliberation.
- See more at: http://taxguru.in/income-tax/icai-suggests-verification-incometax-returns-professionals.html#sthash.juU3B5AC.dpuf
To add: In the published article – Finance Bill, 2006 -IMPROVING TAXPAYERS SERVICE – A Study ((2006) 151 Taxman 295) , one of the connected matters briefly touched upon relate to the implications of rule 12A of the IT Rules. The duties /responsibilities of CAs authorized to render service to taxpayers by way of assisting them in preparing tax returns, as focused on, are onerous in nature. Should, as pointed out, the said rule be modified to render it comprehensive, foolproof and purposeful enough, in one’s perception, that itself might go a long way in eventually accomplishing the same outcome the august professional body seems to,- have had in mind/be its dream.
Now, over to the Experts for an intensive deliberation. - See more at: http://taxguru.in/income-tax/icai-suggests-verification-incometax-returns-professionals.html#sthash.5C5Ck2Lt.dpuf

 

 prev.


The suggestion of 1% TCS on car sales, particularly the stated reason behind, prima facie, by any yardstick, makes for a ‘mamool’ /ordinary type; not really a brainy or exemplary one, so as to deserve to be commended. Instead, that creates in one’s mind a grave doubt,- are there not adequate checks and balances already built in and in force in the excise duty law / its administration, foolproof enough to ward off or keep a tag on any such irregularity as spoken of, in sales of motor cars by its manufacturers.
It may be interesting to know what really are the other suggestions, if at all proving worth the purpose or add credence.

 

 Limited Liability Partnership (LLP) – All you want to know

LLP is ibligted to file “Statement of Account and Solvency (SAS) and Annual Return (AR) and notices in respect of Account and Solvency ”
Points of doubt, seemingly requiring elaboration/clarification, in detail, are these:
1. Does the term’ Solvency’ used, in the given context,have the same import and meaning, as the presunmed-to-be corresponding term ‘going concern’ commonly come-across in case of a corporate; or is it any different?
2. Are there clear guidelines framed BY ICAI and made available firstly for the entity to self-apprise and decide; and/ or for the statutory auditor to independently examine / verify and report, in any manner the satisfaction of the said criterion by a LLP?
3. Does not, Because of the peculiar characteristics of a LLP, in comparison to a body corporate,the exercise need special norms / aspects to be gone into wrt the ‘solvency’ referred to ?
Presumably, Accounting and Law experts may have better thoughts/viewpoints to share with one and all concerned.
- See more at: http://taxguru.in/partnership-act/limited-liability-partnership-llp-2.html#sthash.6tx8oWG2.dpuf
LLP is ibligted to file “Statement of Account and Solvency (SAS) and Annual Return (AR) and notices in respect of Account and Solvency ”
Points of doubt, seemingly requiring elaboration/clarification, in detail, are these:
1. Does the term’ Solvency’ used, in the given context,have the same import and meaning, as the presunmed-to-be corresponding term ‘going concern’ commonly come-across in case of a corporate; or is it any different?
2. Are there clear guidelines framed BY ICAI and made available firstly for the entity to self-apprise and decide; and/ or for the statutory auditor to independently examine / verify and report, in any manner the satisfaction of the said criterion by a LLP?
3. Does not, Because of the peculiar characteristics of a LLP, in comparison to a body corporate,the exercise need special norms / aspects to be gone into wrt the ‘solvency’ referred to ?
Presumably, Accounting and Law experts may have better thoughts/viewpoints to share with one and all concerned.
- See more at: http://taxguru.in/partnership-act/limited-liability-partnership-llp-2.html#sthash.6tx8oWG2.dpuf

 

LLP is ibligted to file “Statement of Account and Solvency (SAS) and Annual Return (AR) and notices in respect of Account and Solvency ”
Points of doubt, seemingly requiring elaboration/clarification, in detail, are these:
1. Does the term’ Solvency’ used, in the given context,have the same import and meaning, as the presunmed-to-be corresponding term ‘going concern’ commonly come-across in case of a corporate; or is it any different?
2. Are there clear guidelines framed BY ICAI and made available firstly for the entity to self-apprise and decide; and/ or for the statutory auditor to independently examine / verify and report, in any manner the satisfaction of the said criterion by a LLP?
3. Does not, Because of the peculiar characteristics of a LLP, in comparison to a body corporate,the exercise need special norms / aspects to be gone into wrt the ‘solvency’ referred to ?
Presumably, Accounting and Law experts may have better thoughts/viewpoints to share with one and all concerned.
- See more at: http://taxguru.in/partnership-act/limited-liability-partnership-llp-2.html#sthash.8B3yYab2.dpuf

 llp is obligted to file “statement of account and solvency (sas) and annual return (ar) and notices in respect of account and solvency ”

points of doubt, seemingly requiring elaboration, elucidation,
clarification, in detail, are these:

1. does the term ’solvency’ used, in the given context, have the same import and meaning, as the presumed-to-be corresponding term ‘going concern’ commonly come-across in case of a body corporate; or is it any different?

2. are there clear guidelines framed by icai and made available, - firstly for the entity to self-apprise and decide; and/ or for the statutory auditor to independently examine / verify and report, in any manner the satisfaction of the said criterion by a llp?

3. does not, because of the peculiar characteristics of a llp, in comparison to a body corporate, the exercise need special norms / aspects to be gone into wrt the ‘solvency’ referred to ?

presumably, accounting and law experts may have better thoughts/viewpoints to share with one and all concerned.

 




 
Form 8

[See rule 24]

Statement of Account & Solvency

Part A: Statement of Solvency



We being the designated partners or authorized representatives of
(name of the LLP/FLLP) do solemnly affirm and sincerely declare that we have made a full inquiry into the affairs of this Limited Liability Partnership/Foreign Limited Liability Partnership, and that, having done so, have formed the opinion that the Limited Liability Partnership/Foreign Limited Liability Partnership is/is not able to pay its debts in full as they become due in the normal course of business. 


We append a Statement of the Assets and Liabilities as at
and Income and Expenditure for the period ended on being the
latest practicable date before the making of this declaration.

 

  NOTE: 

search results

 

prev.

 

BL

 Caught between the law and the rules 

 

 Prev.

 TG

May not necessarily wish to go into the merits or otherwise of the controversy raised against, on a selective basis, the particular DTC provision affecting exclusively the ICAI members’ interests,or especially mind to cross swords with, at this stage. Nonetheless, one is obliged to say with own long-standing firm conviction that, it would have been in the interests of the taxpayers community, besides being in the larger interests of the national economy, had the august body – true to its claim /self- projection as a “Partner in Nation Building”,- made the utmost efforts, as expected / warranted, to go through the highly objectionable and patently obnoxious areas of the DTC and come out with useful suggestions to the Revenue; reference is to the glaringly ill- conceived provisions galore crying aloud for a thorough mindful re-look at/ through.

As pinpointed repeatedly,if one were to go by experts’ views – one such critical view decrying/ridiculing the entire exercise, not without merits, is to be found in a published article authored by a former chairman of CBDT that,- the new code nowhere shows signs of / bears testimony to the tall claim that its objective is ‘simplification’ of the extant law.On the contrary, it has every potential for increased complicity in tax regime, hence inevitable disputes and endless litigation.


More so, in the capacity of ‘semi-regulators’ , the professional bodies such as ICAI would do well to pay concerted attention to these altruistic aspects, as that might go a long way in checking , if not halting, the tax regime being muddled up any more/any longer.

Now, over to right minded experts at large, particularly in field practice, to accord insightful thoughts and incisively deliberate to reaching a fruitful conclusion.
(OPEN to ‘Edit’)

Key Note: Lately there has been so much talk on the topic of , 'csr' in a fashion to make it appear that it is a new found concept; albeit that is sure to be proved not factually so. For that matter, the very premise that the so called social responsibility solely concerns and is confined to corporate is fundamentally wrong and misconceived. What ought not to be forgotten is that, every human right, fundamental, guaranteed, constitutional, statutory, -or not, carries with it a concurrent responsibility to the society, of claimant to any such right, of which he is an inseparable part. If so, all the more reason why any professional or its common body, could not isolate itself or disclaim such a responsibility it owes to the society. Same way as any limb/organ (of human body) can claim any exclusiveness/individuality, with no connectivity to the body or the brain in control of the whole body. To put it differently, that is akin to a stage reached when fit to be admitted only in a ICU (inside which none, not barring even 'i', is not permitted to 'cU' (read‘see you’) on extry but to be left aloof till time for exit)!

To be precise, what head is to human body, society is to life on earth.

< Right on/close to the heels of the earlier posted comment, it is by sheer coincidence, one happened to have a look at the related commentary in the latest edition of Kanga & Palkhivala’s leading text book on the law on Income-tax.


Pointed attention requires to be invited to the relevant commentary in the book, – Tenth Edition (year 2014). In volume I, – on page 3, under 2. Direct Taxes Code, 2012. The experts’ viewpoints set out therein are found to be no different but to truly mirror, and rightly bring to sharp focus, in substance, the commonly aired well-considered criticism against the whole exercise behind the idea of a simplification of the extant law by a new code ever since it came to be mooted and given a shape.



the referred forthright commentary and the cryptic conclusion that, “it is sincerely hoped that the code does not replace the present Act”, might be regarded to have said all as expected by the right thinking law experts in practice, – of the 1961 enactment , and its predecessor of 1922.


ICL

mAR 27

Further Provisions of Companies Act, 2013 Notified

ReF COMM.

 Transfer of Voting Rights, Without Transfer of Shares: Part 1

Prima facie, the 'idea' ,to  say in the least offensive manner, sounds extremely bizarre; reflects the way how to day's minds wantonly choose and keep (ex) imploring it despite it being fundamentally wrong and strikingly opposed to and offends the very basic concept.

In a manner, this is akin to the to the stance taken by tge revenue in it cases e.g. vodafone.

further thoughts in the right direction should help.

 

 

itatonline

 

«


Amidst the grim news that some lawyers are indulging in “cut throat competition” and fee “under-cutting“, one renowned firm of international tax laws experts has sent the stern reminder that this is not professional behavior and gone the other way by indulging in “happiness billing

 

<report in the Economic Times

 

< Before Memory Fades

 

 TOI

Issue of Oct 28, pg. 21


Unaudited Standalone Fin. Results for the Qr./Half-year ended Sept. 30. 2013 (with Notes appended) - published

Limited Review (says): The Limited Review by the  St. Auditors for the Qr. As required under clause 41 of the Listing Ag. Has been completed and the related Report is being fwded. to the SEs. This *Report does not have any impact on the above Results and Notes which need to be explained.
For more details , visit website at http://www.hul.co.in

*Purport  and Accounting Significance to be understood ! 

 

 

OCT 5



BS
oct 5


Three Tips for Better Meetings with Your Accounting Firm's Clients
Quite a pragmatically useful and interesting article. In one's perceptive view, however, in providing information to client on 'other services' the accountant could provide, it is of the utmost importance that care is taken by him to doubly ensure that it is so done making it quite clear that is in no way misleading the client; in other words, not do so without first fully satisfying and convincing self that he is fairly and truly 'equipped' to the extent expected of , and reasonably competent to offer for consumption such service (s).



<previous
SEPT 2

S.23: Income from house property-Annual Value–Notional interest on security deposit cannot be added. [S.22]
It is open to the Assessing authority to take note of the amount of advance paid which gives an indication of fair rent of property that it fetches in market. However, the addition of notional interest on the interest-free security deposit to the rent agreed upon is not permissible in law. (A.Ys. 1997-1998, 1998-1999)
CIT v. Shastha Pharma Laboratories P. Ltd (2013) 355 ITR 316/216 Taxman 73 (Karn.)(HC)

<......the Tribunal has held that notional interest on the advance received cannot be added to the actual rent paid, but the annual rental value has to be determined independently.>

Read on :


<The operative words in section 23(1)(a) of the Act are :'the sum for which the property might reasonably be expected to be let from year to year." These words provide a specific direction to the Revenue for determining the fair rent. The Assessing Officer, having regard to this provision is expected to make an inquiry as to what would be the possible rent that the property might fetch. Thus, if he finds that the actual rent received is less than the fair/market rent because the assessee has received an abnormally high interest-free security deposit and because of that, the actual rent received is less than the rent which the property might fetch, he can undertake necessary exercise in that behalf. However, the notional interest on the interest-free security cannot be taken as the determinative factor to arrive at a fair rent. The provisions of section 23(1)(a) do not mandate this. In a taxing statute it would be unsafe for the court to go beyond the letter of the law and try to read into the provision more than what is already provided for.">

....

<
9. In the light of the aforesaid discussion, the addition of notional interest on the interest free security deposit to the rent agreed upon is not permissible in law. It is open to the Assessing Authority to take note of the amount of advance paid which gives an indication of the fair rent of the property that fetches in the market. But the interest accrued on such deposit cannot be added to the agreed rent, so as to make a fair rent or market rent. Therefore, the Tribunal is justified in setting aside the said finding recorded by the authorities below.
10. In that view of the matter, the order of remand do not call for interference by this court. The substantial question of law is answered is favour of the assessee and against the Revenue. Ordered accordingly.>
SUNIL
Key Note:

Ref. Updates on Direct Taxes, item 4. at pg. 14 of SIRC Newsletter (September 2013- the  Issue delivered to me only on October 1)

The learned CA’s review, instead of skirting, could have desirably pinpointed the fallacy in the itat’s direction, which now stands endorsed by the HC.

The reasoning behind, with due respect, to put it least critically, makes for a confusing reading.

Points of Poser:

1.   Why the dispute was rightly claimed, successfully so, to involve a “substantial question of law”, so as to persuade for the appeal to be, not dismissed, but  heard and decided  after going into the merits of the stance taken by both parties?
2.   Even so, what really is the expected outcome / or purpose intended to be served, even if eventually the AO comes to determine the  “sum for which the property might reasonably be expected to be let  from year to year” (clause (a) ),- by factoring in for such an exercise the element of “notional interest’”, - at a sum higher than the “actual rent received” (clause (b)) ?
Over to tax experts in the hope of being enlightened !  
Cross refer>


The Hon’ble Bombay High Court in the case of CIT Vs. J.K. Investors (Bombay) Ltd. 248 ITR 723 (Bom) - See more at: http://taxguru.in/income-tax-case-laws/notional-interest-on-deposit-not-includible-in-%E2%80%9Cannual-value%E2%80%9D-us-231a-231b.html#sthash.lhFKO8w9.dpuf
ITAT Mumbai Bench in the case of Tivoli Investment & Trading Co. (P) Ltd. Vs. ACIT 90 ITD 163(Mum). It was thus submitted by the learned D.R. that the estimation of annual value as done by the AO is…..
<24. The decision relied upon by the learned D.R. in the case of Fizz Drinks Ltd.(supra), are distinguishable on facts. The facts in that case were that the agreed rent was Re. 1/- per month and interest free security deposit of Rs. 1,62,36,000/- was taken by the owner. It was this factor which weighed in the mind of the Tribunal as is evident from the observations in para-8 of its order where they have held that any fair judicial administration would not allow such things to happen. The decision in the case of Tivoli Investment & Trading Co. (P) Ltd. (supra) is again distinguishable because it was a case where there was no rent and only a huge interest free security deposit was taken by the owner. >

Key Note 2:


To read the proposed corresponding provisions in the DTC.  Those are intended
to simplify the extant provisions; and have reference, with inspiration drawn from
related case law (summed up in Palkhivala's text Book on the topic- concepts of,
'annual value', 'fair rental value' , 'fair rent', so on. May be found to contain useful
clues / cues on the reasonable interpretation of the extant law.
Needs to be adeded, PC, the architect of DTC , in his wisdom and inimitable style
no doubt cautiioned to the effect that, the DTC as framed is a fresh and new code
hence must be read and understood withot turning to or being influenced by the
experience on the extant law, Nonetheless, he has not said that the simplified DTC
should not be looked up for help in satisfactorily resolving any of the issues that
have eluded any finality for almost a century since the 1922 legislation.

(To be edited) 
  1.  

  2.  

  3. Section 23 in The Income- Tax Act, 1995 - Indian Kanoon

    indiankanoon.org/doc/1218766/

    amendment act · property cases ... Central Government Act. Section 23 in TheIncome- Tax Act, 1995. 23. Annual value how determined. (1) 2[ For the purposes of section 22, the annual value of any property shall be deemed to be-.

  4. Section 23 of the Income-tax Act, 1961 - CAclubindia

    www.caclubindia.com › judiciary  Income Tax

    Oct 16, 2007 - Held It was the case of the revenue that clause (c) of section 23(1) can only be invoked in those cases where the property was let out in earlier ...


<previous
Bl

SM (ca)' s mixed REcipe >



Shouldn’t have parted company with old laws

Overturning some of the provisions of the Companies Act, 1956, wasn’t a great idea. »
Xcerpts>
<Then we embraced the LLP (limited liability partnership) model, once again to keep up with the Joneses. Partnership exposes the partners to unlimited liability whereas a private limited company restricts a shareholder’s liability to the extent of his shareholding.
This distinction was clear-cut but the Limited Liability Partnership Act, 2008, queered the pitch by bringing into picture something that has trappings of both —flexibility of partnership as far as meetings and other rigours are concerned, coupled with limited liability to confer the best of both worlds. One wonders why the extant private limited companies have not made a beeline for conversion into LLPs.
The Companies Act, 2012, goes a step further and institutionalises the concept of one person company (OPC) which, to the purists, is an oxymoron given the fact that the word ‘company’ means at least two persons.>


<PREVIOUS

Mind the data



Bl
Sept 26


OPINION

Transfer pricing rules still fuzzy

Firms stranded in a sea of confusion.Recent attempts to simplify transfer pricing rules, using the ‘safe harbour’ concept, are not good enough. »




TG
Sept 25

Tougher Norms for Auditors & Auditees in Companies Act, 2013


BL
Auditor refuses to sign Financial Tech accounts

suresh.iyengar@thehindu.co.in
<Statutory auditor Deloitte Haskins & Sells said the financial statement of Financial Technologies could not be relied upon due to the crisis in NSEL.>
in accordance with Standard on Auditing 560 informed that the audit reports dated May 30 on the standalone and the consolidated financial statement of the company for the year March 31 should no longer be relied upon.”
The company has decided to defer three agenda items, including consideration of audit report, dividend payment and reappointment of Deloitte Haskins as auditor for this financial year, at the AGM.>


TMI
Sept.22














































  • cross -refer >


    http://vswaminathan-swamilook.blogspot.in/2013/09/om-lord-ganesha-bl-as-ever.html




    Taxmann

    10-09-2013
    IT : Continuance of proceeding by ICAI after settlement of matter between complainant and respondent-chartered accountant before CLB were perverse








    [2013] 36 taxmann.com 402 (Punjab & Haryana)
    HIGH COURT OF PUNJAB AND HARYANA
    Institute of Chartered Accountants of India
    v.
    K.K. Sindwani


    Factum of settlement between the complainant and the contesting respondent before the Company Law Board has not been denied by the petitioner in the rejoinder and during the course of hearing. Not only this, the disciplinary committee has annexed with its report which is a letter written by the complainant to the Institute of Chartered Accountants of India (the petitioner) saying that with reference to the above captioned matter he did not wish to press the charges in the above complaint. [Para 10]
    The disciplinary committee not only ignored the settlement reached between the complainant and the contesting respondent before the Company Law Board but also the assertion of the complainant that he did not press the complaint and returned a finding with regard to the charge. [Para 12]
    Similarly the Council considered the charge and decided that the respondent was guilty of professional misconduct. [Para 13]
    It is seen that the complainant did not appear either before the disciplinary committee or before the Council. Thus, the allegations contained in the complaint have remained unsubstantiated. The disciplinary committee and the Council have failed to disclose on what basis the charge against the contesting respondent was said to have been proved. It is rather amazing to note that the complainant having settled the dispute with the contesting respondent before the Company Law Board, did not appear before the disciplinary committee and the Council. The Company Law Board, however, conveyed to the petitioner that in view of the settlement between the complainant and the contesting respondent nothing survived in the complaint but the disciplinary committee and the Council still proceeded with the complaint for reasons best known to them and came to a conclusion that the charge had been proved even without any evidence being led in support of the same. It may be added that the provisions of section 21 being penal in nature the allegations against the contesting respondent were required to be established with some certainty, if not beyond reasonable doubt. Even by the understanding of a layman 'proof' means sufficient evidence to substantiate a proposition. However, proof with certainty or sufficient evidence apart, there is no evidence, whatsoever, in proof of the allegations against the contesting respondent. Report of the disciplinary committee and decision of the Council do not say that instead of the complainant some other witnesses were examined in proof of the allegations and /or record of the case was proved during the course of the proceedings. [Para 14]
    In fact, after the complainant settled the matter with the respondent before Company Law Board and then wrote to the petitioner that he does not press his complaint against the respondent, the disciplinary committee and the Council were not justified in continuing with the proceedings as the very basis of the proceedings, i.e., the complaint on the basis of which the proceedings had been initiated, had become non-existent. It is not the case of the petitioner that the settlement reached before the Company Law Board and request of the complainant that he does not press the complaint were not in the knowledge of the disciplinary committee and the Council. The two documents, in fact, form part of the report of the disciplinary committee. No reasons have been given for ignoring the settlement and as regards request of the complainant not to press the complaint. [Para 15]
    Neither the disciplinary committee nor the Council has referred to the evidence on the basis of which the charge is stated to have been proved. Finding of disciplinary committee and decision of the Council, therefore, are found to be perverse and not backed by evidence. [Para 16]








    TOI

    spiritual <The need to acquire spiritual strength

    BL

    Hi ! you say you are an economic expert; but thgen what do you do for your living !

    PM is an econpmist; that explains why he is a man of few words !

     

    Time to go beyond numbers

    Finance and accounting professionals need soft skills and IT competence too, to stay relevant. »

    <> Impulsive reaction: The thrust of the write-up, - call it an anaytical exposition or by some other description, -is, as largely understood, prima facie confined to financial functions exclusively in relation to any business.commercial adventure e.g. dealing in goods, or services or the like; not to a case where the business itself is in the field of finance (i.e. financing)- that is, typically banking business. As such, if financing is the business itself, it is a completely different approach and analysis that might be called for. On that premise, the ideas, clues, suggestions, etc . aired may not fit in (hold good) so as to fix up for "financing".

    Call to experts to specially explore !

    No comments:

    Post a Comment