Clarification by ICAI on newspaper reports on Income-tax assessments

This has reference to the press reports which have been published today in some of the newspapers about the Income-Tax assessment of The Institute of Chartered Accountants of India. It is hereby clarified that Accounts of the Institute were duly audited and signed by the auditors and after adoption by the Institute, the same were published in the Gazette of India as well as circulated among its members and filed with the Income Tax authorities as well.

As regards allegations, which have been stated in the newspapers, it is clarified that exemption under section 10(23 C)(iv) has not been withdrawn but the fact is that it is only pending with the DG- Income Tax (Exemption).

As regards, the adverse remarks appearing in the papers, it is clarified that there is no violation of tax laws, hiding/concealment of any income including income from coaching activities and loan granted to associate body falls within the powers of the Council under the provisions of The Chartered Accountants Act, 1949. Moreover, there is no change in the activities of the Institute and all its activities are eligible for claiming the exemption which has been allowed over the years by the tax authorities.

A view taken by a particular officer in the Tax department in a specific year is not final and the Institute is quite sure that it is fully eligible for exemption and appropriate steps have been taken for the same.