ABCAUS - Excel for Chartered Accountants
ABCAUS Menu Bar

Get ABCAUS updates by email

Neither Company Secretaries nor Chartered Accountants authorised to appear in National Tax Tribunal (NTT). Argument was that they are allowed to appear brefor Income Tax Tribunals

ABCAUS Logo
ABCAUS Excel for Chartered Accountants

Excel for
Chartered Accountants

The Supreme Court of India today on 25 th September, 2014 in the case of Madras Bar Association vs Union of India declared the National Tax Tribunal (NTT) as unconstitutional. In the above case one of the contentions was that a number of provisions including Sections 5, 6, 7, 8 and 13 of the NTT Act, undermine the independence of the adjudicatory process vested in the NTT, and as such, are liable to be set aside in their present format.

Section 13 of the NTT Act is as under:

“13. Appearance before National Tax Tribunal - (1) A party to an appeal other than Government may either appear in person or authorize one or more chartered accountants or legal practitioners to present his or its case before the National Tax Tribunal.

(2) The Government may authorize one or more legal practitioners or any of its officers to present its case before the National Tax Tribunal.

Explanation – For the purposes of this Section,-

(a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;

(b) “legal practitioner” means an advocate, a vakil or any attorney of any High Court, and includes a pleader in practice.”

The relevant question before the Supreme Court were:

Whether Company Secretaries should be allowed to appear before the NTT to represent a party to an appeal in the same fashion, and on parity with, Accountants?

Whether Section 13(1) of the NTT Act insofar as it allows Accountants to represent a party to an appeal before the NTT is valid?

The Institute of Company Secretaries of India(ICSI)  has filed a Writ Petition (Civil) No. 621 of 2007 seeking the right of company secretaries to appear before the NTT.

The Institute of Chartered Accountants of India (ICAI) who was a party in the writ, represented that the claim of Company Secretaries and Chartered Accountants is not comparable due to special acumen of chartered accountants.

Iit was contended, that the Chartered Accountants are permitted to appear before a large number of tribunals/for a under various act and statutory provisions. (for example; Income Tax Act, 1961, Central Excise Act, 1944, Customs Act, 1962, Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act, 1956, the Competition (Amendment) Act, 2007 etc.)

However the apex court ruled that Chartered Accountants and Company Secretaries would at best be specialists in understanding and explaining issues pertaining to accounts and declared Section 13(1), insofar as it allows Chartered Accountants to represent a party to an appeal before the NTT, as unconstitutional and unsustainable in law.

The relevant excerpt of the judgment is as under;

“Keeping in mind the fact, that in terms of Section 15 of the NTT Act, the NTT would hear appeals from the Income Tax Appellate Tribunal and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) only on “substantial questions of law”, it is difficult for us to appreciate the propriety of

representation, on behalf of a party to an appeal, through either Chartered Accountants or Company Secretaries, before the NTT. The determination at the hands of the NTT is shorn of factual disputes. It has to decide only “substantial questions of law”. In our understanding, Chartered Accountants and Company Secretaries would at best be specialists in understanding and explaining issues pertaining to accounts. These issues would, fall purely within the realm of facts.”

“We find it difficult to accept the prayer made by the Company Secretaries to allow them, to represent a party to an appeal before the NTT. Even insofar as the Chartered Accountants are concerned, we are constrained to hold that allowing them to appear on behalf of a party before the NTT, would be

unacceptable in law. We accordingly reject the claim of Company Secretaries, to represent a party before the NTT. Accordingly the prayer made by Company Secretaries in Writ Petition (Civil) no. 621 of 2007 is hereby declined. While recording the above conclusion, we simultaneously hold Section 13(1), insofar as it allows Chartered Accountants to represent a party to an appeal before the NTT, as unconstitutional and unsustainable in law.”

National Tax Tribunal declared Unconstitutional – Supreme Court of India   Read More Click Here >>

aaaaaaaaaaaaiii
Don’t Forget to like and share ABCAUS Face Book Page