Reporting violations of tax laws by the chartered accountants regulator Institute of Chartered Accountants of India (ICAI), which had dubbed accounts fudging in Satyam Computer as shameful, the Income-Tax department has withdrawn tax exemptions given to the body.
A panel for tax assessment found violations such as failure to get the accounts signed by auditors, providing loans to partners without guarantee and interest and hiding income from coaching business, following which it decided to impose a penalty on the ICAI.
According to the tax authority’s order dated December 31, the penalty is initiated for non-compliance of notice and for concealment of the particulars of income and furnishing of inaccurate particulars of income.