ICAI Reprimands CA for Signing Tax Audit Reports Without Certificate of Practice

ICAI Reprimands CA for Signing Tax Audit Reports Without Certificate of Practice

The Disciplinary Committee (Bench–II) of the Institute of Chartered Accountants of India examined information forwarded by the Taxation Audits Quality Review Board based on CBDT data relating to tax audit reports filed during FY 2010-11. It was alleged that CA Kamlesh Narayansinh Surati, Mumbai, had conducted and uploaded two tax audit reports under Section 44AB of the Income Tax Act, 1961, without holding a valid Certificate of Practice (COP) at the relevant time.

In his written submissions and during the hearing on 7 January 2026, the Respondent admitted that he had certified the two tax audit reports despite not possessing a COP. He formally pleaded guilty before the Committee.

Main Issue: Whether certifying tax audit reports without holding a valid Certificate of Practice constitutes professional misconduct under the Chartered Accountants Act, 1949.

Committee’s Decision: The Committee observed that Section 6(1) of the Chartered Accountants Act, 1949 prohibits a member from practising without obtaining a Certificate of Practice. Certification of tax audit reports is an attest function that can only be undertaken by a member holding a valid COP.

The Committee held that the act constituted a clear violation of Section 6(1) and amounted to professional misconduct under Item (1) of Part II of the Second Schedule. In exercise of powers under Section 21B(3)(a), the Committee ordered that he be Reprimanded.

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