Certificate of registration as Income Tax Practitioner is mandatory for representation before revenue authority

IT : Mere possession of educational qualification without undergoing departmental examination by the Board itself was not sufficient to have any right to practice as Income Tax Practitioner. Representative can't appear before revenue authorities without any certificate of registration as Income Tax Practitioner

Facts

1.		The assessee-society filed an application in prescribed form for grant of registration under section 12AA of the Income-tax Act ('IT Act'). The Commissioner of income-tax (CIT) directed the assessee-society to produce the books of account, audit report, bills and vouchers (i.e. prescribed documents). The CIT rejected the registration application of society on the ground that the genuineness of the activities of the assessee could not be established in the absence of documentary evidence;
2.		Initially, the arguments were advanced by Mr. X, an Advocate, but later on Mr Y, also joined the arguments. Both of them argued that on the date of hearing before the CIT, the prescribed documents and evidences of activities of the assessee were furnished. However, to their surprise and agony, the CIT held that no books of account, etc., had been produced before him;
3.		Mr. Y submitted that he did not have any certificate of practice as ITP from CIT, Gwalior. He was, therefore, directed to explain how he could appear before the Tribunal.

Held

I. On the issue of registration application of society under section 12AA

In absence of detailed reasoned order and in view of the fact that the counsel for assessee had filed personal affidavit to say that all the books of account and relevant documents were produced before the CIT, the matter required reconsideration at the level of CIT. Thus, the impugned order was set aside and the matter restored to the file of CIT with direction to re-decide the registration application of the assessee as per law;

II. On the issue whether Mr. Y has right to appear before the Income-tax Authorities or the Tribunal

During the course of arguments, Mr. Y had specifically admitted that he did not have any certificate of registration as ITP. The record also revealed that he had filed his affidavit along with Mr. X, and signed the power of attorney as ITP. This was a wrong practice in filing the combined power of attorney as advocate as well as ITP.

• Mr. Y was not advocate registered with the State Bar Council. Therefore, he should not have claimed that since he was retired departmental Officer, therefore, without any certificate of registration as ITP he could appear before the Income-tax Authorities and the Tribunal. He had also admitted that though he was practicing in Gwalior, but he was not registered with the CIT, Gwalior.

• His claim was totally wrong and his conduct was liable to be impeached. Section 288(2)(v) & (vi) provides the meaning of 'authorized representative' who have passed any accountancy examination recognized by the Board or any person who has acquired such educational qualifications prescribed by the Board in this behalf.

• Mere possession of educational qualification without undergoing departmental examination by the Board itself isn't sufficient to have any right to practice as ITP. According to rules 53, 54 & 55 of the IT Rules, the Chief Commissioner or the Commissioner shall have to maintain prescribed form to register ITP to whom certificate is issued. The person, who claims to be registered as ITP shall have to file proper application supported by documents to prove his accountancy examination recognized and educational qualifications achieved by him as per Rules.

• The above provisions of the IT Act and IT Rules clearly prove that Mr. Y is not ITP as recognized in the Income-tax Act and Rules. Therefore, without any certificate of registration in his favour under the above provisions, he couldn't practice before the IT authorities and the Tribunal. Copy of this order was to be provided to CIT, Gwalior for taking necessary action in the matter because the law would not provide any unauthorized person or representative to appear before the Income-tax Authorities or the Tribunal.

Subscribe to Studycafe by Email