How to appear before Income Tax Authorities. WICASA Date: Friday September 15, 2017 By: CA Shardul Dilip Shah

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1 How to appear before Income Tax Authorities WICASA Date: Friday September 15, 2017 By: CA Shardul Dilip Shah

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10 How Do not panic, simply oblige the taxman. Respond to the notice, and furnish the documents and information the department has sought. File a rectified return and pay the tax due, if any, within the stipulated period. Carry Letter of Authority on Rs 500 stamped paper 10

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13 How In some cases, tax officials may ask you to be present in person for checking returns filed by the assessee. You can either represent your case yourself or authorise a tax expert to do so. The latter option is better as a professional will fully understand each and every explanation sought and respond appropriately. 13

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15 Basics Positive attitude Common sense Mental Ability Good Eye Contact Subject Knowledge Smile 15

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18 How In case there are no complexities in the assessee return, attend the hearing yourself with all income/investment proofs. Else, take a tax expert. Not responding to the notice could cost you a lot of time, money and peace of mind. In some cases, it could also lead to imprisonment. 18

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21 Authorised Representative "authorised representative" means a person authorised by the assessee in writing to appear on his behalf, being (i) a person related to the assessee in any manner, or a person regularly employed by the assessee ; or (ii) any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings ; or (iii) any legal practitioner who is entitled to practise in any civil court in India ; or (iv) an accountant ; or 21

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23 Who As per the provisions stated in Section 288 of the Income Tax Act, 1961, more specifically Clause (iii) of Sub-section (2), an individual who is a legal practitioner, who in this case may be either a lawyer or an advocate, and who is currently practicing law in any of the civil courts within India, can act as an authorised representative on the behalf of the income tax assessee in question 23

24 Authorised Representative (v) any person who has passed any accountancy examination recognised in this behalf by the Board ; or (vi) any person who has acquired such educational qualifications as the Board may prescribe for this purpose ; or (via) any person who, before the coming into force of this Act in the Union territory of Dadra and Nagar Haveli, Goa, Daman and Diu, or Pondicherry, attended before an Income-tax authority in the said territory on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee ; or 24

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26 Authorised Representative (vii) any other person who, immediately before the commencement of this Act, was an Income-tax practitioner within the meaning of clause (iv) of sub-section (2) of section 61 of the Indian Income-tax Act, 1922 and was actually practising as such. 26

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28 Authorised Representative Explanation. In this section, "accountant" means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 is entitled to be appointed to act as an auditor of companies registered in that State. 28

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30 Former Tax Officer Notwithstanding anything contained in this section, if the authorised representative is a person formerly employed as an Income-tax authority, not below the rank of Income-tax Officer, and has retired or resigned from such employment after having served for not less than three years in any capacity under this Act or under the Indian Income-tax Act, 1922, from the date of his first employment as such, he shall not be entitled to represent any assessee for a period of two years from the date of his retirement or resignation, as the case may be 30

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36 Why To ensure an auditor can act and perform his duties in complete independence To protect the interests of the company for whom the auditor is conducting an audit To protect the interests of revenue To ensure that no fraudulent activity takes place by an auditor or during the course of the carrying out of a company audit To ensure audit reports and audit certificates are issued in a proper manner To ensure that the taxable income of the tax assessee in question is calculated, computed and reported in a correct and proper manner 36

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39 Case Laws Bar Council of India Vs A.K.Balaji [SLP(Civil)No(s) /2012] Dt (SC) & A.K.Balaji Vs Govt. of India (2012) 35 KLR (Madras HC) Madras Bar Association Vs. Union of India 39

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45 Accountant is barred Those persons who are not eligible for appointment as an Auditor in the case of a company as per Section 141(3) of the Companies Act,

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47 Accountant is barred who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has in relation to his right to practice as a legal practitioner or accountant, as the case may be; 47

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49 Accountant is barred who is not a legal practitioner or an accountant, is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, the prescribed authority may direct that he shall thenceforth be disqualified to represent an assessee 49

50 Accountants Right Any order or direction under above shall be subject to following conditions, namely : (a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard; (b) any person against whom any such order or direction is made may, within one month of the making of the order or direction appeal to the Board to have the order or direction cancelled ; and (c) no such order or direction shall take effect until the expiration of one month from the making therefore, or, where an appeal has been preferred, until the disposal of the appeal. 50

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52 THANK YOU

APPEALS & REVISIONS. PART I (For CAF-6 and ICMAP students)

APPEALS & REVISIONS. PART I (For CAF-6 and ICMAP students) Chapter 18 APPEALS & REVISIONS Section Rule Topic covered (Part - I for CAF-6 & ICMAP students) PART I 127 76 Appeal to the Commissioner Inland Revenue (Appeals) 128 Procedure in appeal 129 Decision in