ITAT Imposes Costs on CAs

By Vijay Kumar

THE ITAT Jaipur Bench on Wednesday (27.05.2015) imposed costs of Rs. 25,000/- and Rs. 10,000/- respectively on two Chartered Accountants, who are father and son.

The senior CA sent letters to the President of ITAT, Law Secretary and Assistant Registrar. The Tribunal noted, "making wild accusations of all sorts like corruption, collusion, insulting, bias, prejudice and what not. These contemptuous letters speak by themselves, frivolity of language, distorted contents and apparent self contradictory contents of his letter demonstrate that it is a crude attempt to influence independent judgment process for petty professional ends. There is nothing to even remotely suggest any reason on the part of bench to show partiality, prejudice, bias or intention to insult Mr.xxx or his son who are unknown to us as they come from a far away place ' Sumerpur'' and are rarely seen in the ITAT proceedings. They were treated with deserving dignity by offering help and guidance in open court proceeding."

ITAT also observed,

His misadventure doesn't stop here, camouflaging under the self proclaimed virtue of an RTI activist, motivated to bully the judicial officers, he deliberately filed various RTI applications asking for about 81 queries in respect of number of personal details about the judicial officers including their leave, HQ leaving permission, use of car, attendance in office, timings of holding courts, in whose case adjournments were granted or not granted, when officers go to Delhi, whom do they meet etc. etc. The above facts prove that RTI attack is not for any public purposes but to intimidate judicial officers, seized with his judicial matter. A trick to masquerade his blackmailing tactics for mean professional interest, to extract desired result in a sub-judice appeal. TheRTI fiat unfolded by Mr.xx is an apparent colorable device, an attempt to influence/obstruct independent judicial process. The attempt amounts to a total misuse of professional position for dubious gains.

These acts amount to interfering and obstructing judicial process which apart from awarding of cost u/r 32A of ITAT rules is liable for appropriate contempt of court proceedings as well. Such attempts need to be seriously deplored, firmly tackled and suitably dealt with to send a message in professionals fraternity to behave properly and conduct themselves as ordained by ITAT rules and standing orders; court rules, ICAI instructions, professional ethics and etiquettes; Bar council of India guidelines in this behalf.

Considering all the facts, circumstances and material on record by invoking rule 32A of the ITAT Rules we hold that Shri xxx and Shri xxxx are liable for levy of costs as prescribed by said rule 32A. Consequently, we impose cost of Rs. 25,000/- on Shri xxx and Rs. 10,000/- on Shri xxxx for their delinquencies as mentioned above. Separate proposal under Contempt of Court Act will be duly forwarded to Hon'ble Rajasthan High Court.

The cost is recoverable u/r 32A(2) of the ITAT Rules and shall be deposited in the 'Prime Minister Relief Fund'. Copy of this order to be sent by registry to Institute of Chartered Accountants of India to take appropriate disciplinary action against them in terms of ICAI rules and guidelines. The progress may be communicated to bench through registry.

But Can payment be ordered to PM's Relief Fund? Please See DDT 2315.