TaxTMI 
TaxTMI 
2011 (3) TMI 1242
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....n authorised representative as defined under section 288(1) of the Act. Quoting clause (v) of sub-section (1) of section 288, Shri Subbarayan submitted that he was a person who had passed the accountancy examination recognised by the Central Board of Direct Taxes. Attention was invited to rule 50 of the Income-tax Rules, 1962 (in short, "the Rules") which sets out the accountancy examinations which were recognised. According to him, sub-rule (4) of rule 50, clearly mentioned that the Departmental examinations conducted by or on behalf of the Central Board of Direct Taxes was one of those examinations which were recognised and he, having passed such an examination, was eligible to appear before this Tribunal as an authorised representative. 3. Per contra, the learned Departmental representative submitted that as per rule 54 of the Rules, any person who wished to have his name entered as an authorised income-tax practitioner in the register, was obliged to apply to the Chief Commissioner within whose area of jurisdiction he was practicing. According to him, Shri Subbarayan was yet to obtain such registration as specified in rule 55 of the Rules. 4. We have heard the parties and....
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....ative. The authorised representative is defined in sub-section (2) of section 288 and by virtue of clause (v) thereof any person who has passed any accountancy examination recognised by the Board is an "authorised representative". Rule 50 of the Income-tax Rules specifies the examinations recognised for the purpose of clause (v) of sub-section (2) to section 288. Such accountancy examinations recognised are as under : "(1) The National Diploma in Commerce awarded by the All-India Council for Technical Education under the Ministry of Education, New Delhi, provided the diploma-holder has taken Advanced Accountancy and Auditing as an elective subject for the diploma examination. (2) Government Diploma in Company Secretaryship awarded by the Department of Company Affairs under the Ministry of Industrial Development and Company Affairs, New Delhi. (2A) Final examination of the Institute of Company Secretaries of India, New Delhi. (3) The final examination of the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959). (4) The Departmental examinations conducted by or on behalf of the Central Board of Direct Tax....
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....r' means any authorised representative as defined in clause (v) or clause (vi) or clause (vii) of sub-section (2) of section 288 ;" 8. Thus as per clause (a) of rule 49, an "authorised income-tax practitioner" is any authorised representative as defined in clause (v) or clause (vi) or clause (vii) of sub-section (2) of section 288 for appearing before this Tribunal. It cannot be read to mean that an authorised representative as defined in sub-section (2) has to get himself registered as an authorised income-tax practitioner. Sub-section (2) of section 288 does not say that the authorised representative shall also be an authorised income-tax practitioner registered under rules 54 and 55 of the Rules. The right given in this respect by the Act cannot be diluted by rules nor can it be restricted by Rules, by specifying a procedure for registration. The right given to an assessee to appoint an authorised representative who has the qualification to become authorised representative as defined under the Act cannot be denied. In other words, a person having the qualification mentioned under the Act cannot be stopped from appearing before this Tribunal on behalf of the assessee. We are, ....
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....lated rules 17A, 17B and 17C of the Income-tax Rules also do not mention anywhere that an assessee has to get any previous sanction from the Income-tax Department before effecting any such amendments. In our opinion, the Department cannot fasten on the assessee a duty more than what has been prescribed under the statute and by doing so, the Department was taking up the role of a law making authority and indulging in acts which are ultra vires the powers vested on it. It is to be noted that this was the first application ever moved by the assessee for such a registration. The second reason cited by the learned Commissioner of Income-tax is that 25 persons had initially invested in land by contributing entire money in cash and further brought in a sum of Rs. 25 lakhs. According to him, many of the trustees did not have taxable income and investments made by them were questionable in their respective hands. We find that the Act specifies a methodology where anonymous receipts are received by a trust. Section 115BBC of the Act specify a method for taxing anonymous donations. Thus even if we consider that the trustees did not have the wherewithal to contribute the sums mentioned and eve....