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June 2023

CA – From a Watchdog to a Bloodhound?
(Onerous Responsibilities Under Various Statutes)

By Dr. CA Mayur B. Nayak, Editor
Reading Time 6 mins
Anything in excess is bad. The food which nourishes the body, if taken in excess, turns into poison for it. Excessive wealth may cause family disputes and so on. One of the famous verses of the Chanakya Niti reads as follows:
It means that by excessive charity, Karna was ruined. Suyodhan was ruined by excessive greed, and Ravana by excessive desire. Therefore, anything in excess should be avoided everywhere. The above prologue is in the context of excessive responsibilities fastened on Chartered Accountants through various Statutes and/or by several Regulators. Recent amendments to the Code of Ethics1 by the ICAI that were made applicable w.e.f. 1st October, 2022 requires CA Employees and Auditors of the Listed Companies to respond to Non-Compliance with Laws And Regulations (NOCLAR) about which they become aware or suspicious during their engagement. A Professional Accountant2 (PA) is required to comply with the fundamental principles and apply the conceptual framework set out in section 120 of the Code of Ethics to “identify, evaluate and address threats”. While the applicability of NOCLAR in India with the noble objective of protecting the public interest, it fastens wholesome responsibility on a CA, as NOCLAR covers acts of omission or commiss
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Kaalaaya Tasmai Namah

In view of section 270A (6)(a), no penalty under section 270A can be imposed in respect of an erroneous claim made by a salaried employee who is dependent on his consultant for filing the return of income which erroneous claim is withdrawn by filing a revised computation of income and also by revising return of income of subsequent year withdrawing the excess claim.