Tax Auditor Under Tax Audit

Tax Auditor : The term “ACCOUNTANT” has been defined in sub clause (i) of explanation to section 44AB as under:
“ACCOUNTANT” shall have the same meaning as in the Explanation to section 288(2)”.

Disqualification for being appointed as tax auditor
The above – mentiones explanation read as under-
“ACCOUNTANT” means a Chartered accountant as defined in section 2(1)(b) of the Chartered Accountants Act, 1949 who holds a valid certificate of practice u/s 6(1) of that Act, but does not include [ except for the purposes of representing the assessee under sub – section (1)]-

(a) in case of an assessee, being a COMPANY, the person who is not eligible for appointment as a Auditor of the said company in accordance with the provision of section 141(3) of the companies Act, 2013;

or

(b) in any other case, OTHER ASSESSEE

(i) the assessee HIMSELF or in case of the assessee, being a firm or association of persons or Hindu undivided family, any PARTNER of the firm, or MEMBER of the association or the Family Member;

(ii) in case of the assessee, being a TRUST OR INSTITUTION, any person referred to in clauses (a), (b),(c) and (cc) of sub-section (3) of section 13;

(a) the AUTHOR of the trust or the founder of the institution;

(b) any person who has made a SUBSTANTIAL CONTRIBUTION to the trust or institution, that is to say, any person whose total contributuion up to the end of the relevant previous year >₹50000;

(c) where such author, founder or person is a Hindu undivided Family, a FAMILY MEMBER;
(cc) any TRUSTEE of the trust or MANAGER( by whatever name called ) of the institution;

(iii) in case of any person other than persons referred to in sub- clauses (i) and (ii),the person who is competent to verify the return u/s 139 in accordance with the provisions of SECTION 140;

SECTION 140, the return u/s 139 shall be verified by individual, Authorized person, Guardian, power of Attorney holder, karta, family member , MD, any director, Liquidator, Principal officer for Local Authority, insolvency Professional, Managing Partner, Designated Partner, any partner, CEO of political party, etc.

(iv) any relative of any of the persons referred to in sub-clauses             (i),   (ii) and (iii);

(v) an Officer or Employee of the assessee;

(vi) an individual who is a partner, or who is in the employment, of an officer or employee of the assessee;

(vii) an individual who, or his relative or partner—
(I) is HOLDING any security of, or interest in, the assessee:
Provided that the relative may hold security or interest in the assessee of the face value not exceeding one hundred thousand rupees;

(II) is indebted to the assessee:
Provided that the relative may be indebted to the assessee for an amount not exceeding one hundred thousand rupees;

(III) has given a guarantee or provided any security in connection with the indebtedness of any third person to the assessee:
Provided that the relative may give guarantee or provide any security in connection with the indebtedness of any third person to the assessee for an amount not exceeding one hundred thousand rupees;

(Viii) a person who, whether directly or indirectly, has business relationship with the assessee of such nature as may be prescribed;

(ix) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction.

Thanks & Regards

Ravi Aggarwal