Over 300 Chartered Accountants of the city conducted an EOGM at ICAI Bhawan, Sector 14, Hiran Magri today, in relation to a survey conducted by the Income Tax Department at the office of one fellow practicing member of the ICAI.
Subsequent to the meeting, the entire group along with members of the media, proceeded to the Income Tax office at Savina in order to give a representation to the Chief Commissioner of Income Tax towards the survey, which they claim to be illegal and under undue pressure. The representation will then be taken forward to the DG Investigation at Ahmedabad.
As per the representation, as per information provided by an executive member of the ICAI to UdaipurTimes.com, the survey proceedings initiated by the Income Tax authorities were tainted with illegality.
According to the information provided, officers of the IT Department reached the office of the CA firm at 7am on 21st March and called one of the partners asking him to come immediately as survey proceedings u/sec 133A of The Income Tax Act, 1961 had been initiated against his firm. The Partner immediately responded and reached the ADI office, where he was told that he needed to reach his own office as the firm office has been covered under survey as a consequential action of a search in his client’s case as per directions they have claimed to be issued on them.
Further, as per information provided, the Partner of the said firm contacted the Udaipur Tax Bar association and executives of Tax Bar association were apprised by the Department that survey is client specific only and thereafter full cooperation was extended by him and his staff. This survey was carried on for 42 hours inspite of providing all the documents, the officials kept on pressuring that he should force his client to visit at Udaipur and surrender substantial amount under PMGKY (Prime Minister Garib Kalyan Yojna) scheme.
The members of the ICAI have expressed shock that the IT Department is using the office of a professional firm as a tool and pressurizing the client to deposit money under a government scheme meant for the poor (PMGKY).
ICAI Udaipur members, as per the representation, have expressed their discontent and have said that the arbitrary action as neither reason for conducting survey at professional premises was backed by reasons, duly recorded neither providing any corroborating evidence of indulgence of the firm, nor there has been found any visible nexus of involvement inducing to conduct such survey initiated so abrupt manner. They further alleged that such this amounts to Tax Terrorism and such powers are not given under the Act.
In their representation, the members of ICAI Udaipur have indicated that Members of the Tax Bar, as a token of protest against the said action shall boycott the IT Department work and will not appear till 31.03.2017, and that Members will not extend any undue cooperation for PMGKY scheme for which the members are receiving calls from the officials to pressurize their client to opt for the said scheme.