WAS GETTING THE REGISTRATION CERTIFICATE FOR THE CLIENT IS A CRIME?

WHETHER THE ARREST OF CA IS IT A FAIR ?

 WHY REAL CULPRITS
HAVE NOT BEEN ARRESTED ?

IT IS THE TIME FOR PROFESSIONAL’S BODIES TO
PROTECT THE PROFESSIONAL’S INTEREST IN NEAR FUTURE?

Getting GST & Other registration on behalf of the
clients is the normal activity for Chartered Accountants, Advocates, Tax
consultants, Accountants & other professionals.

In all such cases, the tax
professionals act as a
mere facilitator to the clients in getting the registration and not as agents
of the clients. The ultimate registration is granted by the
Department after verifications of the documents and records.

If any of the taxpayers subsequently commits frauds or dupe the
Government, whether the tax professionals can be arrested?

 Whether
the officer who has granted the registration is not the proper officer to be
arrested in such cases, rather than the tax consultants?

Is it right to prosecute the tax consultants who is just facilitating
the process of registration in such case?

Whether the tax consultants is expected
to carry out the due diligence of the clients before accepting any routine
work?

Even in marriages proposal also, the due diligence may
not be full proper, can it be expected in professional-client relationship?

If the activity carried out by the taxpayer is illegal or
not as per the permissible mode, whether tax consultants be held as responsible
for this?

This is the time
to introspect and professional’s bodies like ICAI, Bar Association, Tax
chambers need to take a call on this.

It’s not the question of One Paridhi Jain who was only
getting the firms registered at the behest of her clients after collecting
requisite documents from them. She was prosecuted for more than one month. It’s  a question of each and every tax consultants.
If not now, then get ready for more instances like this.

The matter comes to light when the bail application is
rightfully accepted by the Hon’ble Rajasthan High Court in the case of Paridhi
Jain Vs State in S.B. Criminal Miscellaneous Bail Application No. 742/2020.

The issue is not that she has been granted bail but the
main issue to be observed is that she has been arrested. Why the question of bail has arisen for this 27
years old lady?

Similar issues
have happened in the past also. Why the matter be not taken up with the
appropriate political & administrative forum of Finance Ministry &
CBIC, at least when the person is a member of the most respected fraternity and
deserves respect and recognition.

Was getting the registration certificate for the client is crime?

Let the Government
comes with a model code of conduct for the model code for the tax professionals
so that they can distinct themselves from the clients?

 This is the time
to revisit the routine activities and identify the areas & role the tax
consultants should play. Taking
actual ground level action is such case is more important than planning CPE
programme.

If not we, who
will be with Paridhi Jain? If not now, then when? It is she now, who will be
the next?

Questions to Ponder

·     The
main question in this case , why the tax authorities have arrested a tax
consultant ? Why the real culprits have not been arrested? Why the owners of
the firm who  committed the fraud have
not been arrested ? Why a CA has been made as a scape goat? Which prevented the
tax officials from arresting the real culprits?

·     The
tax professionals act as a mere facilitator to the clients in getting the
registration and not as agents of the clients

·     If
any of the taxpayers subsequently commits frauds or dupe the Government,
whether the tax professionals can be arrested?

·     Whether
the officer who has granted the registration is not the proper officer to be
arrested in such cases, rather than the tax consultants?

·     Is
it right to prosecute the tax consultants who is just facilitating the process
of registration in such case?

·     Whether
the tax consultants is expected to carry out the due diligence of the clients
before accepting any routine work?

·     This
is the time to introspect and professional’s bodies like ICAI, Bar Association,
Tax chambers need to take a call on this.

·     These
bodies should make immediate lobbying at the highest level of government to safeguard
their members interest and to protect them in cases where they have acted genuinely
.