Neha Dhamija
The Income Tax Authorities, after sensing violation of the Laws by ICAI (Institute of Chartered Accountants of India) has decided to take away the exemptions given to it. It is ironical that the authority is itself caught in the knot it was supposed to untie.
Post the Satyam fiasco, a probe into the accounts of various companies of Sensex and Nifty by ICAI has been ordered by SEBI. The penalty imposed on ICAI comes in the wake of acts like keeping incomes from coaching business under wraps, giving loans to partners without interest and guarantee and not getting the accounts stamped by auditors. Such non-compliance by not revealing the facts wholly and not moving according to the guidelines invited the action from IT-department.
The proceedings have already been stimulated owing to the discovery that earnings of about Rs.33.5 crores falls in the taxable bracket. The President of the regulatory body Ved Jain, however declined any such compensation being thrown on it. The institutions registered in Section 12(A) are provided tax exemptions; however in case it is deemed necessary, the privilege can be snatched away, as has been the case with ICAI.
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