TMI Blog2005 (3) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... ic and private sectors, and also of individuals, firms companies and trusts. It was also functioning as Tax Consultants and Tax Representatives. The profession of Chartered Accountants is governed by the Chartered Accountants Act, 1949 (herein after referred to as the Act). Section 3 of the Act provides that chartered accountants registered under Section 4 of the Act constitute a body called the Institute of Chartered Accountants of India. The Council of the said Institute constituted under Section 9 of the Act carries out the various functions mentioned in Section 15 and other provisions of the Act. 4. Various enactments such as the Companies Act, 1956, Income Tax Act, 1961 and the Banking Companies Regulations Act provide that only Chartered Accountants have a specified role to play in companies and other organizations. The intention obviously is that there should be uniform accountancy methods and high level of professionalism. Many years of hard work and knowledge is required to qualify as Member of the Institute and once a person acquired the required qualification he is free to engage himself in the profession without any kind of restriction except for professional miscond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments, which he or any partner of his firm has accepted whether singly or in combination with any other chartered accountant in practice or firm of such chartered accountants, shall be taken into account. 4. The audit of the head office and branch offices of a concern shall be regarded as one tax audit assignment. 5. The audit of one or more branches of the same concern by one chartered accountant in practice shall be construed as only one tax audit assignment. 6. The above notification shall come into force from the financial year commencing on or after 1st April, 1989. 7. A chartered accountant in practice and every partner of a firm of such chartered accountants holding immediately before 1st April 1989, tax audit assignments in excess of the specified number, shall within sixty days from 1st April 1989, intimate his inability to conduct tax audit in excess of the specified number to the concerned assessees. 8. A chartered accountant in practice shall maintain a record of the tax audit assignments accepted by him in each financial year in the format as may be prescribed by the Council. 7. The notification dated 25.05.1987 reads as follows:- No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the country to conduct tax audit assignments and thus cater to enlargement of the work of professional chartered accountants as a result of the introduction of compulsory tax audit in respect of assessees and professional persons. This restriction would enable professional work in relation to compulsory tax audit to be diversified and distributed among young and less advantaged members who are clamoring for professional work and livelihood. Thus, there is no unreasonable restriction of which any grievance can be made by any professional member of the Institute. 10. Thus, the imposition of restriction on the volume of audits and fee which a Chartered Accountant can accept is sought to be justified on the ground that this restriction would enable younger and less fortunate members among the Chartered Accountants to get professional work and earn their livelihood. In our opinion, this is a wholly unreasonable and untenable ground. 11. It is well known that each profession has its own historical conventions, traditions, customs and practices and it has never been the conventions, tradition, custom or practice among the professions like Lawyers' profession, Chartered Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the learned single Judge in paragraph - 10 to 12 of his order. 13. As regards the notification dated 25.5.1987 which has been challenged in W.P. No. 5926 of 1989, we have perused the same, and we are of the opinion that the notification dated 25.05.1987 is also arbitrary and violative of Articles 14 and 19(1)(g) of the Constitution. We have already quoted the notification dated 25.05.1987 above. We are fully in agreement with the learned single Judge who has observed in paragraph - 10 of his order that the said notification is illegal as it affects the fundamental right of the petitioner to carry on his profession under Article 19(1)(g) and Article 14 of the Constitution. In our opinion, the restriction is unreasonable taking into account the conventions and historical traditions of the professional occupation, as already discussed above. The learned single Judge, in our opinion, has rightly held that charging a certain fee by a professional can never be regarded as unprofessional. What will be the fee is a matter to be decided by mutual consent between the client and the professional and the parties must be left free in this connection. Charging higher or lower fee can certai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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