National Tax Tribunal Act 2005 and Cost Accountant?

13. Appearance before National Tax Tribunal.—(1) A party to an appeal other than Government
may either appear in person or authorise one or more chartered accountants or legal practitioners
or any person duly authorised by him or it to present his or its case before the National Tax
Tribunal.
) The Government may authorise one or more legal practitioners or any of its officers to present its case before the National Tax Tribunal.

Cost Audit -A paradigm view.

Re: Cost Audit Again in News-Business Line.

--- In CMA_India@yahoogroups.com, "CMA.R.Veeraraghavan" wrote:
>
>

Sir

This has reference to the Article in the opinion section of your daily on 12-10-2006 "Should we bid adieu to cost audit?".by A.R.Ramanathan.

In addition to what the esteemed author has stated- for the government and the industry to re-orient its outlook towards the exercise, I would like to add the following which may kindly be Published.

While questioning the requirement of Cost audit time and again one must analyse in totality why Cost audit is required and for that, one must know the deficiency and focus of related audit systems that have been statutorily sanctified ,specially the Financial Audit:

The focus of financial audit is scrutiny of financial records(Income and expenses)to ascertain and repose faith in the profits projected, Value of assets and liability in a given period, Propriety of the transaction of income and outgo. Simply this is the essence of scrutiny of financial records. Its focus is Shareholders of the company who are supposedly wealth creators of the business.

Financial records fail miserably in speaking out about the internal strength, efficiency, and sustenance aspect of the business ,which a seasoned businessman is interested. Financial records do not also reflect the wealth creation for the society at large(no macro economic outlook).

It doesn't question price-output-cost relation as well, it doesn't also address the competitors strategy and our strength. In essence it is simply a documentation of inflow-outflow data and projection of residue as gain available for distribution.

Financial audit is shortsighted in its approach and Blind towards societal interest.

The focus of Cost-audit is stake-holders at large (every citizen of India is a stakeholder in the economic activity of the country) Cost records basically reflect Cost incurred in the activity and the drivers that enable such incurrence and thus warn the business to moderate the drivers in advance. It speaks amply about utilisation of resources which is vital for managing an economy. It discloses the reasonability or otherwise of the pricing module which is important to bringing an exploitation free society.

Cost records scrutiny is vital for business sustenance as well ,when we talk of demutualisation of management and owners. Management perspective is sustenance and efficiency and these two are amply addressed by cost records, through its methods and techniques which are prescriptive(Like budgeting, standard costing ,variable costing, pricing methods like target pricing etc.)

Do owner-investor benefit from this exercise, yes in the long run an investor is unconcerned with immediate gains but the vision of business to sustain and its data projecting bottomline efficiency is utmost important for a owner-investor,

While a government benefit from the cost data for planning,resource monitoring,Price controls and comparative industry study with authentic cost data.The tax department benefits from the hard work of Cost accountants both inrespect of Direct tax(where the basis is to judge from allowances and disallowances and mapping with cost to business activity)and indirect taxes(where Cost of goods and services is vital).

It is thus unfortunate to see cost audit often being projected in negative perspective by one and all and in a democracy the conflict of interest in sharing such data is just in the maxim"what is good for all is many a times not good for a few who rule". which sans the basic framework of the constitution"Of the people, by the people and for the people".

Improving reporting methodology, switching from becoming just a prescriptive exercise to a value-added and dynamic tool can trigger focus on cost audit. Audit itself is an art of handling data to produce decision tools and cost auditor should now-on be proactive and prove value addition to the management. Cost audit in India is there to stay for long and i am confident about it and the world can learn from us in this regard.

Thanx

CMA.R.Veeraraghavan

EXIM Policy and Practising Cost accountants

Click on the heading above to go places.
AAYAAT- NIRYAAT FORM
HANDBOOK OF PROCEDURES VOLUME 1, 2004-09
as amended upto 8 th April 2005
GUIDELINES FOR APPLICANTS
1. Two copies of the application must be submitted unless otherwise mentioned.
2. Each individual page of the application has to be signed by the applicant.
3. a. Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted
electronically, no hard copies of Part 1 may be submitted. However in cases where
applications are submitted otherwise, hard copy of Part 1 has to be submitted.
b. Only relevant portions of Part 2 & Part 3 need to be filled in.
4. Application must be accompanied by documents as per details given below:
I. For Importer Exporter Code Number (IEC)
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Certificate from the Banker of the applicant firm in the format given in Appendix 18A.
3. Self certified copy of Permanent Account Number (PAN) issued by Income Tax
Authorities.
4. Self certified copy of RBI approval in cases where non resident interest/holding in the
firm/company exists with repatriation benefits.
II. For Import Licence for Restricted Items
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of
application fee in terms of Appendix 21B.
2. Self certified copy of Proforma Invoice from foreign supplier showing CIF value of the
goods.
3. Self certified copy of Registration Certificate issued by concerned authority.
4. Self certified copy of the recommendation letter by the concerned authority.
5. In case of import of gift, Donor's letter in Original.
6. In case of import of Ammunition, a certificate from the Chartered Accountant/Cost and
Works Accountant/Company Secretary showing sales turnover of ammunition
(indigenous and imported) during the preceding three licensing years.
II A. For Import Certificate under Indo – US Memorandum
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Self certified copy of letter from US supplier in support of request for Import Certificate.
III. For Export Licence for Restricted Items
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Self certified copy of Export Order.
III A. For Export Licence for SCOMET Items
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. For Export of Special Chemicals in Categories 1B a nd 1C of Schedule 2 Appendix
3 of ITC (HS) Classification of Export & Import items:
a. Self certified copy of Export Order.
b. End User certificate indicating the end product for which the item of export will be
used by end user in the format given in Appendix 3 6.
3. For Export of all other category items of Schedule 2 Appendix 3 of ITC (HS)
Classification of Export & Import items except those given in serial no 2 above :
a. Self certified copy of Export Order.
b. End User certificate indicating the end product and/or end purpose for which the item
of export will be used by end user in the format given in Appendix 36.
c. Technical Specifications of the items to be exported (not exceeding one page for
each item).
d. Self certified copy of Bill of Lading for items exported earlier under a Licence as per
serial no. 3 of Part B of sub section III A.
IV. For Star Export House Certification
1. Self certified copy of valid RCMC.
2. Statement of exports made in the preceding three licensing years and/or current
licensing year duly certified by a Chartered Accountant/Cost and Works Accountant in
the format given in Appendix 26.
3. Self certified copy of the Balance Sheet filed with Income Tax Authorities for the relevant
year(s).
V. For Advance Licence applications
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Additional documents required in case of issue of Advance Licence for Annual
Requirements:
a. Statement of exports made in the preceding licensing year duly certified by a
Chartered Accountant/Cost and Works Accountant in the format given in Appendix
26.
b. Self certified copy of the manufacturing licence of the applicant firm or his supporting
manufacturer.
3. Additional documents required in case of issue of DFRC:
a. In case of physical exports
i. EP copy of the Shipping Bill or Bill of Export (only in case of exports through
notified land Customs under paragraph 4.19)
ii. Bank Certificate of Exports and Realisation as given in Appendix 22A or
Foreign Inward Remittance Certificate (FIRC) in the case of direct negotiation of
documents or Appendix 22D in the case of offsetting of export proceeds with
approval of RBI. In case of FIRC, a declaration from the exporter that the
remittance is in respect of Shipping Bill(s) No ____________ dtd _________
shall also be furnished.
iii. Statement of exports/supplies giving separately each Shipping Bill number/Bill of
export number and date, FOB/ FOR value in Indian rupees as per Shipping Bill/
Bill of export and description of the resultant product.
b. In case of deemed exports
i. Copy of the invoice duly signed by the unit receiving the material and their
jurisdictional excise authorities certifying the item of supply, its quantity, value
and date of such supply. However incase of supply of items, which are nonexcisable
product(s), a project authority certificate (PAC) certifying quantity,
value and date of such supply would be acceptable in lieu of excise certification.
Not withstanding the above, in respect of supplies to EOU, a copy of ARE-3 duly
signed by the jurisdictional excise authorities certifying the item of supply, its
quantity, value and date of such supply shall be furnished.
ii. Payment certificates from the project authority as per Appendix-22C or
payment certificate or bank certificate of payment for domestic supplies as per
Appendix 22B which ever is applicable.
iii. Statement of supplies giving separately each supply invoice number and date,
FOR value in Indian rupees as per invoice and description of th e resultant
product.
4. In cases where import of fuel has been sought for the grant of Advance Licence/
Advance Licence for Annual Requirements/ DFRC (excluding Advance licence
applications for ad-hoc norms and those under Para 4.7 of Handbook)
a. Self certified copy of the permission issued to the manufacturer exporter by the
competent authority (concerned State Electricity Board or Power Corporation or
Regulatory Commission of the State) under Section 44 of the Electricity (Supply) Act,
1948 for the installation of captive power plant based on the specified fuel unless the
permission is specifically waived by the State Electricity Board; and
b. Self certified copy of the letter intimating the date of commissioning of the captive
power plant from the concerned authority which issued the permission letter is to be
submitted.
Note: The import of only such fuel(s) shall be allowed which have/ has been specified in
the said permission.
5. Additional documents required in case of supplies under deemed
export/intermediate supplies under Advance Licence Scheme:
a. Invalidation letter in case of supplies to
i. an EPCG licence holder;
ii. an Advance Licence holder;
b. Project Authority certificate in case of supplies other than (a) (i) & (ii) above and to
EOU/ EHTP/ STP/BTP units;
6. Additional documents required in case of issue of Advance Licence under Para
4.7 of Handbook
a. Information as per Appendix-11A.
b. 1. Technical Details of the export product as per the details given in Appendix 33
2. Chartered Engineer certificate certifying the import requirements of raw materials
in the format given in Appendix 32B
3. Production and Consumption data of the manufacturer/supporting manufacturer
of the preceding three licensing years, duly certified by the Chartered accountant/
Cost & Works Accountant/ Jurisdictional Excise Authority.
V A. For GEM REP applications
1. Bank Receipt (in duplicate)/Demand Draft evidencing payment of application fee in
terms of Appendix 21B.
2. Bank certificate of export and realisation in the format given in Appendix 22A evidencing
realisation of exports proceeds/sales proceeds.
3. Export Promotion (EP) copy of Shipping Bill(s) in Original. (Photocopy of the EP copy of
Shipping Bill duly endorsed may be returned for utilization/re-import purposes when the
exports are made on consignment basis).
4. Customs attested invoice.
5. In case of application for Replenishment licence under paragraph 4A.28 of this
Handbook, an applicant will be required to submit documents as given at S.No.1 above
and Statement of Exports made during the preceding licensing year duly certified by
Chartered Accountant/Cost & Works Accountant in the format given in Appendix 26.
V B. For Diamond Imprest applications
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Self certified copy of valid RCMC.
3. Self certified copy of Export Order.
4. Statement of exports of cut and polished diamonds made during the preceding three
licensing years duly certified by Chartered Accountant/Cost & Works Accountant in the
format given in Appendix 26. The value of exports made towards fulfillment of export
obligation under Diamond Imprest Licence shall be shown separately.
V C. For DEPB applications
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Export Promotion (EP) copy of Shipping Bill(s). In case of exports through notified land
Customs under paragraph 4.40, Bill of Export may be accepted in lieu of Shipping Bill.
3. Bank Certificate of Exports and Realisation as given in Appendix 22A or Foreign Inward
Remittance Certificate (FIRC) in the case of direct negotiation of documents or Appendix
22 D in the case of offsetting of export proceeds with the approval of RBI. In case of
FIRC, a declaration from the exporter that the remittance is in respect of Shipping Bill(s)
No ____________ dtd _________ shall also be furnished
VI. For EPCG Licence applications
1. Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application
fee in terms of Appendix 21B.
2. Self certified copy of Drug Manufacturing License in case of export of Pharmaceutical
product or self certified copy of IEM/SSI Registration Number in case of other products
or a self certified copy of Service Tax Registration in case of Service Providers.
3. Certificate from a Chartered Engineer in the format given in Appendix 32A certifying:
a. the end use/nexus of machinery sought for import under EPCG Scheme in the pre
production/production/post production activity of the exported goods/services
(explaining the end use of machinery in detail); and/or
b. the essentiality of spare parts sought for import and its required quantity for existing
machinery manufacturing the goods to be exported/ machinery sought for import;
and/or
c. complete usage of equipments/goods sought for import under the EPCG Scheme for
supply of service to overseas customers/ service consumers of any other country in
India to earn free foreign exchange/supply of service in India relating to export paid
in free foreign exchange.
4. Statement of exports made/services rendered by the applicant firm in respect of the
same/similar export product/services rendered during the preceding three licensing
years duly certified by a Chartered Accountant/Cost and Works Accountant in the format
given in Appendix 26.
5.

The broader sketch of areas in which u can find cost accountants are engaged.

This should primarily contain each practising members area ofoperations classified as One major area and other area based onrevenue generation or clientele.This would focus the institute on marketing services of CostAccountants.The PCAs need not be asked to divulge clientele or revenueinformation but simply a self declaration as to the activities.The areas under coverage should be broadly:
1.Maintenance of Books accounts(Including Cost accounts wherenecessary).
2.Engaged in Establishment and design(customisation)of Accounts(Financial as well as Cost accounts).
3.Internal Audit(Including design and certification).
4.Rendering Accounting services for non-corporates.
5.Engaged in Consultancy services relating to various Tax laws forbusiness.
6.Acting as Authorised representatives under the provisions ofvarious laws(Taxation and others)
7.Rendering Management Consultancy.
8.Engaged In Statutory Cost Audit.
9.Engaged in Attest Functions under VAT and Central Excise andCustoms Acts.
10.Engaged in rendering Financial services(Brokering,Portfoliomanagement.
Any Other Services if that is what the Practising CA is engaged in.
This would finally help in pooling resources of expertise to pass onto the next breed of Cost accountants in the make.I think council members will make this concscious decision soonerthan later.
In addition they can be engaged as consultants in Project management ,Specific assignments from Governments etc

Cost Accountants to establish Professional accounting firms to help business maintain accounts in complinace with various laws.

Accounting services as distinct from audit and attest services are well developed in many countries.As a Professional Accountant A cost accountant in practice can help business establish a well knit accounting mechanism.Establish internal controls and perform internal audit.
Accounting function is largely inhouse in organised business in india but sooner than later this function will be a outsourced function with comparative cost-benefit.Practising Cost Accountants should sharpen their edges to deliver the business the value addition needed with respect to various compliances.
In addition Cost Accounting system whereever prescribed are to be guided by a cost accountant for the industry and business houses to comply with.
Many business entity that have been prescribed to maintain cost accounts find it difficult to comply for want of trained Cost accountants.The role of cost accountants multiplies here.Infact if the practising cost accountants keep track of this many companies will start complying with the provisions.
The gist of applicability is mentioned below:
Books of account to be kept by company:

209(1) Every Company shall keep at its registered office proper books of account with respect to -
(a) ......
(b) ......
(c) .....
(d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or labour or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of account:

Provided that all or any of the books of account aforesaid may be kept at such other place in India as the Board of directors may decide and when the Board of directors so decides, the company shall, within seven days of the decision, file with the Registrar a notice in writing giving the full address of that other place.

In exercise of the powers conferred by sub section (1) of section 642 read with clause (d) of sub
section 209 of the Companies Act, 1956, (1 of 1956), the Central Government hereby makes the following rules,
namely:-
1. Short Title and Commencement:-
(1) These rules may be called the cost Accounting Record []* Rules, 1967.
(2) They shall come in to force on the 1st day of October 1967.
2. Application:- They shall apply to every company engaged in the production or manufacturer of []* excepting
those companies falling under the category of small scale industrial units.
Explanation - For the purpose of this rule, the expression "small scale industrial undertaking" means a
company -
(a) [the aggregate value of the machinery and plant installed wherein does not exceed The limit as
specified for a small scale industries (Development and regulation ) Act.1951 (65 of 1951), as on the last date of
the preceding financial year and]1
(b) [the aggregate value of the realization made by the company from the sale or supply of all its products
during the preceding financial year does not exceed ten crore rupees.]2
3. Maintenances of Records:-
(1) Every Company to which there rules apply shall in respect of easy of its accounting years commencing
on or after the 1st day of October, 1967,[till the 31st day of March,2000]3 keep proper books of account
containing inter alia particulars specification in I and II annexed to these rules relation to utilization of material,
labour and other items of cost so far as they are applicable to it.
(2) The book of account aforesaid shall be kept in such a way as to make it possible to calculate the cost of
production of ----produced during the financial year of the Company (hereinafter referred to
the relevant period) from the particulars entered therein.
[(3) Every company to which these rules apply shall, in respect of each of its financial year commencing
on or after the 1st day of April, 2000 keep proper books of account containing, inter alia, the particulars
specified in Schedule III and Proforma mentioned in the said Schedule annexed to these rules relating to the
utilization of materials, labour and other items of cost in so far as they are applicable to cycles and components
thereof.
Provided that if the said company is manufacturing any other product or is engaged in other activities in addition
to manufacture of cycles and components thereof, the particulars relating to utilization of materials, labour and
other items of cost in so far as they are applicable to such other products or activities shall not be included in the
cost of cycles and components thereof.
(4) The books of accounts referred to in sub-rules(3) shall be kept on a regular basis in such a manner as
to make it possible to calculate the cost of production and cost of sales of all makes of cycles and components
thereof for every financial year from the particulars entered therein and every such books of account and the
proforma specified in Schedule III annexed to these rules shall be completed not later than ninety days from the
closing of the financial year of the company to which they relate.
(5) Statistical and other records shall be maintained in accordance with the provisions of the Schedule III
annexed to these rules, which shall be such as to enable the company to exercise as far as possible, control over
the various operations and costs with a view to achieve optimum economies in cost and provide the necessary
data required by the Cost Auditor to suitably report on all the points referred to in Cost Audit (Reports)
Rules,1996.
(6) It shall be the duty of every person, referred to in sub-section(6) and sub-section(7) of section 209 of
the Companies Act 1956 (1 of 1956), to take all reasonable steps to secure compliance by the company with the
provisions of sub-rules (1), (2), (3), (4) and (5) of this rule in the same manner as he is liable to maintain
accounts required under sub-section(1) of section 209 of the said Act".]4
4. Penalty:- If a company contravent the provision of rule 3, the company and every officer of the company
who is in default [including the person referred to]5 in sub-section (6 of section 209 of the Company Act 1956 (1
of 1956) shall be punishable with fine which may extend to five hundred rupee and where the contravention is a
continuing one, with a further fine which may extend to fifty rupees for every day after the first during which
such contravention continue.

Valuer under wealth tax act

(7) A valuer of stocks, shares, debentures, securities, shares in partnership firms and of business assets, including goodwill but excluding those referred to in sub-rules (2) to (6) and (8) to (11), shall have the following qualifications, namely :
(i) he must be a member of the Institute of Chartered Accountants of India or the Institute of Cost and Works Accountants of India 62[or the Institute of Company Secretaries of India]; and
[(A) he must have been in practice as a chartered accountant or a cost and works accountant or a company secretary for a period of not less than ten years and his gross receipts from such practice should not be less than fifty thousand rupees in any three of the five preceding years, or]
(B) he must be a person formerly employed
(a) in a post under Government as a gazetted officer, or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 64[2,000] per month,
and, in either case, must have retired or resigned from such employment after having rendered service for a period of not less than 65[ten] years in the field of audit and accounts or taxation work 66[, or]
66[(c) as a Company Secretary 67[or a Deputy Company Secretary] or an Assistant Company Secretary in a post carrying a remuneration of not less than Rs. 68[2,000] per month and must have retired or resigned from such employment after having rendered service for a period of not less than 69[ten] years.]

Cost Accountant and Competition Act

Section 2(g) of the rules of the competition rules and section 35 of the competition act enables a cost accountant in practice as a counsel on behalf of the client to represent before the commission.

Appearance before Commission
35. A complainant or defendant or the Director General may either appear in person or authorise one or
more chartered accountants or company secretaries or cost accountants or legal practitioners or any of
his or its officers to present his or its case before the Commission.
Explanation.—For the purposes of this section,—
(a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1)
of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a
certificate of practice under sub-section (1) of section 6 of that Act;
(b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of
section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate
of practice under sub-section (1) of section 6 of that Act;
(c) "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2
of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of
practice under sub-section (1) of section 6 of that Act;
(d) "legal practitioner" means an advocate, vakil or an attorney of any High Court, and includes a
pleader in practice.

1
I
2. Definitions –
(1) In these Regulations, unless the context otherwise requires:
(a) "Act" means the Competition Act, 2002 (12 of 2003);
(b) "Bench" means Bench constituted under Section 22 of the
Act and includes the Principal Bench, Additional Bench,
Mergers Bench and Special Bench. Special Bench means
larger Bench constituted under sub-section (4) of Section 23
of the Act.
(c) "Chairperson" means the Chairperson appointed under
Section 8 and includes the senior-most Member acting as
Chairperson under sub-sections (4) of Section 10 and the
senior most Member discharging the functions of the
Chairperson under sub-section (5) of Section 10 of the Act;
(d) "Commission" means the Competition Commission of India
established under Section 7 of the Act;
(e) "Complaint" means and includes complaint or reference falling
under Section 19 of the Act;
(f) "Complainant" means a person who or the Central
Government or a State Government or a Statutory Authority
which makes complaint to the Commission.
(g) "Counsel" means and includes a legal practitioner, a
chartered accountant, a company secretary, a cost
accountant as defined in Explanation to Section 35 of the
Act;

Cost Accountants Role in Certifying adequacy of Internal Audit

New Delhi, the 27th December, 2001
G.S.R. 924(E).- In exercise of the powers conferred by sub-section (4) of section 233B, read with subsection
(1) of section 227 and clause (b) of sub-section (1) of section 642, of the Companies Act, 1956 (1 of 1956),
and in supersession of the Cost Audit (Report) Rules, 1996, except as respect things done or omitted to be done,before such supersession, the Central Government hereby makes the following rules, namely
:-
FORM OF THE COST AUDIT REPORT
[See rule 2(c) and rule 4]
FORM OF THE COST AUDIT REPORT
[See rule 2(c) and rule 4]

3. Based on my/our examination of the records of the company subject to aforesaid qualifications, if any,
I/We give my/our observations and suggestions on the following -
(a) the adequacy or otherwise of the cost accounting system including inventory valuation in vogue in the
company and suggestions for the improvement thereof. The Cost auditor shall also indicate the persistent
deficiencies in the system, pointed out in earlier reports but not rectified;
(b) the adequacy or otherwise of the budgetary control system, if any, in vogue in the company;
(c) matters which appear to him to be clearly wrong in principle or apparently unjustifiable;
(d) cases, where price charged for related party transactions as defined in the respective Cost Accounting
Records Rules is different from normal price, impact of such lower/higher price on margin of the product
under reference shall be specified;
(e) areas where the company is incurring losses or where there is considerable decline in profitability, the cost
auditor should comment on the reasons thereof including indicative break-even point. The cost auditor
shall also comment on the default, if any on the payments due to the Government, financial institutions and
banks, penal interest levied thereon and its impact on the cost of sales and profitability;
(f) steps required to strengthen the company under the competitive environment especially with regard to need
for protection from cheaper imports, if any;
(g) export commitments of the company vis-à-vis actual exports for the year under review. Also comment on
comparative profitability and pricing policy of the company for domestic and export sales. Give impact of
exports benefits/ incentives offered by the Government on export profitability;
(h) the scope and performance of internal audit of cost records, if any, and comment on its adequacy or
otherwise.
4. The Cost Auditor shall suggest measures for making further improvements in the performance in respect of
cost control and cost reduction.
5. The Cost Auditor may also give his other observations and suggestions, if any, relevant to the cost
audit.

Audit of accounts of cooperative society act-multi state cooperative act

CHAPTER IIIAUDIT AND ACCOUNTS
16. Books of accounts-
Every multi-State cooperative society shall keep books of account with respect to :-
(a) all sums of money received and expended and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchase of goods;
(c) the assets and liabilities;
(d) in the case of a multi-State cooperative society engaged in production, processing and manufacturing, particulars relating to utilisation of materials or labour or other items of costs as may be specified by the Central Registrar.
17. Subject matter of audit-
(1) The audit of a multi-State cooperative society under sub-section(1) of section 67 shall include, in addition to the matters specified in sub-section(2) of that section the following particulars:
(a) Whether the auditor has obtained all the information and explanations which, to the best of his knowledge and belief are necessary for the purposes of his audit;
(b) whether in his opinion proper books of accounts as specified in these rules and bye-laws have been kept by the multi-State cooperative society so far as it appears from the examination of those books and proper returns adequate for the purposes of his audit have been received from the branches not visited by him;
(c) Whether the balance-sheet and profit & loss account exhibit a true & fair view of the state of affairs of the multi-State Cooperative society according to best of his information and explanation given to him and as shown by the books of the multi-State cooperative society; and
(d) Whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the multi-State cooperative society.
(2) Where in any of the matters referred to in sub-rule (1) the answer is in the negative or in the affirmative with any remark, the auditor shall give reasons for such answer with facts and figures in support of such remarks.
(3) The audit report shall also contain schedules with particulars of:-
(a) all transactions which appear to be contrary to the provisions of the Act, the rules or the bye-laws of the multi-State cooperative society;
(b) Any money belonging to the multi-State cooperative society which appears to the auditor to be bad or doubtful of recovery;
(c) The loans given by the multi-State cooperative society to the members of the board; and
(d) any other matter as may be specified by the Central Registrar in this regard.
(4) The auditor shall make his report to the multi-State cooperative society and also send a copy of that report direct to the Central Registrar.
The Central Registrar may for reasons to be recorded in writing, direct that if any portion of the audit report which appears to him of objectionable nature or not justified, be expunged and the portion so expunged shall not form part of the audit report.
(5) The audit report given by the auditors shall be considered by the board of a multi-State cooperative society and placed before the general body with their comments.
(6) The defects pointed out by the auditors in the working of the multi-State Cooperative society shall be specifically considered by the board and a compliance report explaining the measures taken to rectify the defects
be submitted to the Central Registrar within three months of the receipt of the audit report.
*Rule 18
__________________
*There is no rule under Serial No.18.
CHAPTER VIIAUDIT, INQUIRY, INSPECTION AND SURCHARGE
67. Audit -
(1) The Central Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every multi-State cooperative society at least once in each year.
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the multi-State cooperative society.
(3) The person auditing the accounts of a multi-State cooperative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The directors, managers, administrators and other officers of the multi-State cooperative society shall furnish to the person auditing the accounts of the society all such information as to its transactions and working as such person may require.
(5) The Central Registrar or the person authorised by him under sub-section (1) to audit the accounts of a multi-State cooperative society shall have power, where necessary -
(a) to summon at the time of the audit any officer, agent, servant or member of the society, past or present, who, he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and
(b) to require the production of any book or document relating to the affairs or, any cash or securities belonging to, the society by any officer, agent, servant, or member of the society in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody.
(6) If at the time of audit the accounts of a multi-State cooperative society are not complete, the Central Registrar or the person authorised by him under sub-section (1) to audit may cause the accounts to be written up at the expense of the society.
(7) Audit fee, if any, due from any multi-State cooperative society shall be determined by the Central Registrar and shall be recoverable in the same manner as is provided in section 89.
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Uttaranchal state:

Audit 44. (1) A co-operative shall get its accounts audited by a chartered
accountant within the meaning of the Chartered Accountants Act.
1949:
provided that where a co-operative's business turnover is less than
Rs. ten lakhs, it may appoint as auditor, any person is, from within
its membership or outside, with such qualifications as are specified
in the articles of association
(Explanation: For the purpose of this section, business turnover
shall mean the value of sales, services provided and/or loans
recovered.)
(2) A co-operative at its Annual General Meeting, shall appoint an
auditor. This appointment will be valid only until the close of the
next succeeding Annual General Meeting.
(3) The remuneration of an auditor may be fixed by the general body
or, if not so fixed, by the Arbitral Tribunal.
(4) An auditor ceases to hold office when the auditor
(a) resigns;
(b) is removed from office under sub-section
(c) completes his/her term of office.
(5) The resignation of an auditor becomes effective at the time a
written resignation is received by the co-operative, or at the time
specified in the resignation whichever is later.
(6) The general body may by a special resolution, remove an auditor
from office.
(7) An auditor, who
(a) resigns; or
(b) receives a notice or otherwise learns of a Board's meeting called
for the purpose of removing him/her from office;
is entitled to submit to the Board a written statement giving the
reasons for the auditor's resignation or the comments on the
proposed removal, as the case may be.
(8) A vacancy created by the resignation of an auditor shall be filled up
by the arbitral tribunal.
(9) A vacancy created by the removal of an auditor, too, shall be filled
up by the arbitral tribunal.
(10) An auditor appointed to till a vacancy holds office for the unexpired
term of his/her predecessor.
(11) The auditor shall be given notice of every general meeting and at
the expense of the co-operative, will be entitled to attend and be
heard thereat on matters relating to the auditor's duties as auditor
and their exercise.
(12) It shall be the duty of the Board to ensure that annual financial
statements are prepared and presented for audit within forty-five
days of closure of the co-operative's financial year.
(13) Upon the reasonable demand of the auditor of a co-operative, the
chief executive shall arrange to
(a) provide such access to records, documents, books, accounts and
vouchers of the co-operative; and
(b) furnish such information and explanations,
as are, in the opinion of the auditor, necessary to enable him/her to
make the examination and report, and as the chief executive or a
present or former Director, members, managers, or employees are
reasonably able to furnish.
(14) It shall be the duty of the auditor to ensure that audited annual
financial statements and the auditor's accompanying report are
furnished to the co-operative within sixty days of the submission of
annual financial statements by the Board.
(15) The auditor's report to the members of the co-operative shall:
(a) state whether the auditor has obtained all the information and
explanations which to the best of the auditor's knowledge and belief
were necessary for the purpose of the auditor's audit;
(b) state whether the co-operative's balance sheet and income and
expenditure account dealt with by the report are in agreement with
the books of accounts;
(c) indicate the basis on which each asset and liability was valued,
and make specific mention of any change in the manner in which
such valuation was done in the year under examination and its
effect on surplus/deficit;
(d) indicate the amount of surplus earned/deficit incurred from
provision of services to non-members as distinct from
surplus/deficit accruing because of members or in normal course of
business;
(e) indicate every deviation in actual expenses and income from the
estimated expenses and income in the approved budget;
(f) specify the gross remuneration and/or honorarium and/or
allowances paid and/or value of benefits provided, if any, to the
chief executive, any of the office bearers, or Directors, in the
financial year under audit;
(g) state whether or not any of the office bearers or Directors had
become, at any time during the year under review, ineligible under
this Act to continue in office as an office bearer or Director; and
(h) state whether the decisions on disposal of surplus or assessment
of deficit, of the general body, at its previous annual general
meeting were implemented correctly and completely or not.

Financial Companies Regulation Bill, 2000*_RBI

Right to legal representation
25. The depositor or the financial company may either appear in person or a
or more chartered accountants or company secretaries or cost accounta
practitioners or any of its officers to present his or its case under this Ac
Board.
Explanation. - For the purposes of this section, -
a. "chartered accountant" means a chartered accountant as defined in cla
subsection (1) of section 2 of the Chartered Accountants Act, 1949 (38
and who has obtained a certificate of practice under sub-section (1) of
that Act;
b. "company secretary" means a company secretary as defined in clause
section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1
who has obtained a certificate of practice under sub-section (1) of sect
Act;
c. "cost accountant" means a cost accountant as defined in clause (b) of
(1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 19
who has obtained a certificate of practice under sub-section (1) of sect

Value Added Tax and Cost Accountant.

Many states have recognised Cost Accountant to certify Accounts of business inorder to ascertain VAT collection.
Gujarat VAT Act For Instance Section 63:

63. If in respect of any particular year, total turnover of a dealer exceeds
rupees one crore, then such dealer shall get his accounts verified and audited
by a specified authority within one year from the end of that year and obtain
within that period a report of such audit in the prescribed form duly signed and
verified by such specified authority alongwith such particulars as may be
prescribed. A true copy of such report shall be furnished by such dealer to the
Commissioner within such period as may be prescribed.
Explanation.-- For the purposes of this section,-
(a) "specified authority" means,-
(i) a Chartered Accountant within the meaning of the Chartered
Accountants Act, 1949 and includes persons who by virtue of the provisions
of sub-section (2) of section 226 of the Companies Act, 1956, is entitled to be
appointed to act as an auditor of companies;
(ii) a Cost Accountant within the meaning of the Cost and Works
Accountants Act, 1959;
(iii) a legal practitioner or a Sales Tax Practitioner whose name is entered in
the list maintained by the Commissioner in accordance with the provisions of
section 81.
(b) "total turnover" shall have the same meaning as given in Explanation
below sub-section (1) of section 3.
(2) If any dealer liable to get his accounts audited under sub-section
(1) fails to furnish a true copy of such report within the prescribed time the
Commissioner shall, after giving the dealer a reasonable opportunity of being
heard, impose on him, in addition to any tax payable, a sum by way of penalty
not exceeding rupees ten thousand, as he may determine.
64. The dealer shall preserve his books of accounts and the records
relevant for the purpose of this Act till the period of eight years from the end of
the accounting year to which the books of accounts and the records relate.
************************************************
Section 42 of Kerala VAT act2003 contains provision for cost accountant to audit books of accounts.Section 42 of AP VAT act.Section 31 of Karnataka VAT act Rule 34 here provides audit by tax practitioners registered under rule 163 to audit non-company accounts.Section 65 of Orissa Act.Section 60 of J&K Act.Section 62 of Assam Act.Section 62 Of Uttaranchal Act.

The MCA21 and Certified facilitation centre.

A Practising Cost Accountant can now register with ministry of company affairs to act as a certified facilitation centre for E-Filing of documents with the registrar of companies.

Indian Companies Act 1956

Audit of cost accounts in certain cases.233B. (1) Where in the opinion of the Central Government it is necessary so to do in relation to any company required under clause (d) of sub-section (1) of section 209 to include in its books of account the particulars referred to therein, the Central Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959) :Provided that if the Central Government is of opinion that sufficient number of cost accountants within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959), are not available for conducting the audit of the cost accounts of companies generally, that Government may, by notification in the Official Gazette, direct that, for such period as may be specified in the said notification, such chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), as possesses the prescribed qualifications, may also conduct the audit of the cost accounts of companies, and thereupon a chartered accountant possessing the prescribed qualifications may be appointed to audit the cost accounts of the company.(2) The auditor under this section shall be appointed by the Board of directors of the company in accordance with the provisions of sub-section (1B) of section 224 and with the previous approval of the Central Government :Provided that before the appointment of any auditor is made by the Board, a written certificate shall be obtained by the Board from the auditor proposed to be so appointed to the effect that the appointment, if made, will be in accordance with the provisions of sub-section (1B) of section 224.(3) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 224.(4) An auditor shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under sub-section (1) of section 227 and such auditor shall make his report to the Central Government in such form and within such time as may be prescribed and shall also at the same time forward a copy of the report to the company.(5) (a) A person referred to in sub-section (3) or sub-section (4) of section 226 shall not be appointed or re-appointed for conducting the audit of the cost accounts of a company.(b) A person appointed, under section 224, as an auditor of a company, shall not be appointed or re-appointed for conducting the audit of the cost accounts of that company.(c) If a person, appointed for conducting the audit of cost accounts of a company, becomes subject, after his appointment, to any of the disqualifications specified in clause (a) or clause (b) of this sub-section, he shall, on and from the date on which he becomes so subject, cease to conduct the audit of the cost accounts of the company.(6) Upon receipt of an order under sub-section (1), it shall be the duty of the company to give all facilities and assistance to the person appointed for conducting the audit of the cost accounts of the company.(7) The company shall, within thirty days from the date of receipt of a copy of the report referred to in sub-section (4), furnish the Central Government with full information and explanations on every reservation or qualification contained in such report.(8) If, after considering the report referred to in sub-section (4) and the information and explanations furnished by the company under sub-section (7), the Central Government is of opinion that any further information or explanation is necessary, that Government may call for such further information and explanation and thereupon the company shall furnish the same within such time as may be specified by that Government.(9) On receipt of the report referred to in sub-section (4) and the informations and explanations furnished by the company under sub-section (7) and sub-section (8), the Central Government may take such action on the report, in accordance with the provisions of this Act or any other law for the time being in force, as it may consider necessary.(10) The Central Government may direct the company whose cost accounts have been audited under this section to circulate to its members, along with the notice of the annual general meeting to be held for the first time after the submission of such report, the whole or such portion of the said report as it may specify in this behalf.(11) If default is made in complying with the provisions of this section, the company shall be liable to be punished with fine which may extend to five thousand rupees, and every officer of the company who is in default, shall be liable to be punished with imprisonment for a term which may extend to three years, or with fine which may extend to fifty thousand rupees, or with both.

Appearance by authorised representative.288

(iv) an accountant; or
In this section, accountant means a 8chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 2269 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.
(v) any person who has passed any accountancy examination recognised in this behalf by the Board5; or
Recognised Accountancy qualification recognised by the Board:
[Accountancy examinations recognised.
50. The following accountancy examinations are recognised for the purpose of clause (v) of sub-section (2) of section 288, namely :—
(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.]
78[(2A) Final Examination of the Institute of Company Secretaries of India, New Delhi.]
79[(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).]
80[(4) The Departmental Examinations conducted by or on behalf of the Central Board of Direct Taxes for 81[Assessing Officers], Class I or Group ‘A’, Probationers, or for 81[Assessing Officers], Class II or Group ‘B’, Probationers, or for promotion to the post of 82[Assessing Officers], Class II or Group ‘B’, as the case may be.]
83[(5) The Revenue Audit Examination for Section Officers conducted by the Office of the Comptroller and Auditor General of India.]

Authorised Representative under Income Tax Act 1961

Appearance by authorised representative.2
3288. (1) Any assessee who is entitled or required to attend before any income-tax authority or the Appellate Tribunal in connection with any proceeding under this Act otherwise than when required under section 131 to attend personally for examination on oath or affirmation, may, subject to the other provisions of this section, attend by an authorised representative.
4(2) For the purposes of this section, authorised representative means a person authorised by the assessee in writing to appear on his behalf, being
(i) a person related to the assessee in any manner, or a person regularly employed by the assessee; or
(ii) any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings; or
(iii) any legal practitioner who is entitled to practise in any civil court in India; or
(iv) an accountant; or
(v) any person who has passed any accountancy examination recognised in this behalf by the Board5; or
(vi) any person who has acquired such educational qualifications as the Board may prescribe6 for this purpose; or
7[(via) any person who, before the coming into force of this Act in the Union territory of Dadra and Nagar Haveli, GoaV, Daman and Diu, or Pondicherry, attended before an income-tax authority in the said territory on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee; or]
(vii) any other person who, immediately before the commencement of this Act, was an income-tax practitioner within the meaning of clause (iv) of sub-section (2) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), and was actually practising as such.
Explanation.In this section, accountant means a 8chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 2269 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.
(3) 10[***]
(4) No person
(a) who has been dismissed or removed from Government service after the 1st day of April, 1938; or
(b) who has been convicted of an offence connected with any income-tax proceeding or on whom a penalty has been imposed under this Act, other than a penalty imposed on him under 1[clause (ii) of sub- section (1) of] section 271; or
(c) who has become an insolvent,
shall be qualified to represent an assessee under sub-section (1), for all times in the case of a person referred to in sub-clause (a)*, for such time as the 12[Chief Commissioner or Commissioner] may by order determine in the case of a person referred to in sub-clause (b)*, and for the period during which the insolvency continues in the case of a person referred to in sub-clause (c)*.
(5) If any person
(a) who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has in relation to his right to practise as a legal practitioner or accountant, as the case may be;
13(b) who is not a legal practitioner or an accountant, is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, the prescribed authority14 may direct that he shall thenceforth be disqualified to represent an assessee under sub-section (1).
(6) Any order or direction under clause (b) of sub-section (4) or clause (b) of sub-section (5) shall be subject to the following conditions, namely :
(a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;
(b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and
(c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.
(7) A person disqualified to represent an assessee by virtue of the provisions of sub-section (3) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), shall be disqualified to represent an assessee under sub-section (1).

Income Tax Act 1961

[Scheme for submission of returns through Tax Return Preparers.
139B. (1) For the purpose of enabling any specified class or classes of persons in preparing and furnishing returns of income, the Board may, without prejudice to the provisions of ection139, frame a Scheme, by notification in the Official Gazette, providing that such persons may furnish their returns of income through a Tax Return Preparer authorised to act as such under the Scheme.
(2) Every Tax Return Preparer shall assist the persons furnishing the return of income in such manner as may be specified in the Scheme framed under this section and affix his signature on such return.
(3) For the purposes of this section,
(a) Tax Return Preparer means any individual, [not being a person referred to in clause (ii) or clause (iii) or clause (iv) of sub-section (2) of ection288 or an employee of the specified class or classes of persons], who has been authorised to act as a Tax Return Preparer under the Scheme framed under this section;
(b) specified class or classes of persons means any person, other than a company or a person, whose accounts are required to be audited under ection 44AB or under any other law for the time being in force, who is required to furnish a return of income under this Act.
(4) The Scheme framed by the Board under this section may provide for the following, namely:
(a) the manner in which and the period for which the Tax Return Preparers shall be authorised under sub-section (3);
(b) the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Tax Return Preparer;
(c) the code of conduct for the Tax Return Preparers;
(d) the duties and obligations of the Tax Return Preparers;
(e) the circumstances under which the authorisation given to a Tax Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be, specified by the Scheme for the purposes of this section.
(5) The Scheme framed by the Board under this section shall be laid, as soon as may be after it is framed, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme or both Houses agree that the Scheme should not be framed, the Scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]
****************************************************************************************
139. 30[(1) Every person31,
(a) being a company 32[or a firm]; or
(b) being a person other than a company 32[or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,
shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form33 and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification34 in the Official Gazette, and who 35[during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or] at any time during the previous year fulfils any one of the following conditions, namely :
(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified36 by the Board in this behalf; or
(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or
(iii) 37[***]
(iv) has incurred expenditure for himself or any other person on travel to any foreign country; or
(v) is the holder of a credit card38, not being an add-on card, issued by any bank or institution; or
(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,
shall furnish a return, of his income 38a[during any previous year ending before the 1st day of April, 2005], on or before the due date in the prescribed form39 and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided further that the Central Government may, by notification40 in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply:
Provided also that every company 41[or a firm] shall furnish on or before the due date the return in respect of its income or loss in every previous year:
41[Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.]
Explanation 1.For the purposes of this sub-section, the expression motor vehicle shall have the meaning assigned to it in clause (28) of section 242 of the Motor Vehicles Act, 1988 (59 of 1988).
Explanation 2.In this sub-section, due date means,
(a) where the assessee is
(i) a company; or
(ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or
(iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force,
the 31st day of October of the assessment year;
(b) in the case of a person other than a company, referred to in the first proviso to this sub-section, the 31st day of October of the assessment year;
(c) in the case of any other assessee, the 31st day of July of the assessment year.
Explanation 3.For the purposes of this sub-section, the expression travel to any foreign country does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification43 in the Official Gazette.]
44[(1A) Without prejudice to the provisions of sub-section (1), any person, being an individual who is in receipt of income chargeable under the head Salaries may, at his option, furnish a return of his income for any previous year to his employer, in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette45, and subject to such conditions as may be specified therein, and such employer shall furnish all returns of income received by him on or before the due date, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and manner as may be specified in that scheme, and in such case, any employee who has filed a return of his income to his employer shall be deemed to have furnished a return of income under sub-section (1), and the provisions of this Act shall apply accordingly.]
46[***]]
47[(1B) Without prejudice to the provisions of sub-section (1), any person, being a company or being a person other than a company, required to furnish a return of income under sub-section (1), may, at his option, on or before the due date, furnish a return of his income for any previous year in accordance with such scheme as may be specified by the Board in this behalf by notification in the Official Gazette48 and subject to such conditions as may be specified therein, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and in the manner as may be specified in that scheme, and in such case, the return of income furnished under such scheme shall be deemed to be a return furnished under sub-section (1), and the provisions of this Act shall apply accordingly.]
49[***]
(3) If any person who 50[***] has sustained a loss in any previous year under the head Profits and gains of business or profession or under the head Capital gains and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) 51[or sub-section (3)] of section 74, 52[or sub-section (3) of section 74A], he may furnish, within the time allowed under sub-section (1) 53[***], a return of loss in the prescribed form54 and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1).
55[(4) Any person who has not furnished a return within the time allowed56 to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time56 before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :
Provided that where the return relates to a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]
57[58[(4A) 59Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]]
60[(4B) 61The chief executive officer (whether such chief executive officer is known as Secretary or by any other designation) of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]
62[(4C) Every
(a) scientific research association referred to in clause (21) of section 10;
(b) news agency referred to in clause (22B) of section 10;
(c) association or institution referred to in clause (23A) of section 10;
(d) institution referred to in clause (23B) of section 10;
(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10;
(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10,
shall, if the total income in respect of which such scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form63 and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]
64[(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :
Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]
65[(6) The prescribed form of the returns referred to 66[in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142] shall, in such cases as may be prescribed, require the assessee to furnish the particulars of income exempt from tax, assets of the prescribed nature 67[, value and belonging to him, his bank account and credit card held by him], expenditure exceeding the prescribed limits incurred by him under prescribed heads and such other outgoings as may be prescribed.
(6A) Without prejudice to the provisions of sub-section (6), the prescribed form of the returns referred to 68[in 69[***] this section, and in clause (i) of sub-section (1) of section 142] shall, in the case of an assessee engaged in any business or profession, also require him to furnish 70[the report of any audit 71[referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report], the] particulars of the location and style of the principal place where he carries on the business or profession and all the branches thereof, the names and addresses of his partners, if any, in such business or profession and, if he is a member of an association or body of individuals, the names of the other members of the association or the body of individuals and the extent of the share of the assessee and the shares of all such partners or the members, as the case may be, in the profits of the business or profession and any branches thereof.]
(7) 72[***]
73[74(8)(a) 75[Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then [whether or not the 76[Assessing] Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2)], the assessee shall be liable to pay simple interest at 77[fifteen] per cent per annum, reckoned from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assesment, as reduced by the advance tax, if any, paid, and any tax deducted at source :
Provided that the 78[Assessing] Officer may, in such cases and under such circumstances as may be prescribed79, reduce or waive the interest payable by any assessee under this sub-section.
Explanation 1.For the purposes of this sub-section, specified date, in relation to a return for an assessment year, means,
(a) in the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year or the 30th day of June of the assessment year, whichever is later;
(b) in the case of every other assessee, the 30th day of June of the assessment year.]
80[Explanation 2.Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section.]
81[(b) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254or section 260 or section 262 or section 263 or section 264 82[or an order of the Settlement Commission under sub-section (4) of section 245D], the amount of tax on which interest was payable under this sub-section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and
(i) in a case where the interest is increased, the 83[Assessing] Officer shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;
(ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.]]
84[(c) The provisions of this sub-section shall apply in respect of the assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references therein to the other provisions of this Act shall be construed as references to the said provisions as they were applicable to the relevant assessment year.]
85[(9) Where the 86[Assessing] Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the 86[Assessing] Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return :
Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the 86[Assessing] Officer may condone the delay and treat the return as a valid return.
Explanation.For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely :
(a) the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in;
(b) the return is accompanied by a statement showing the computation of the tax payable on the basis of the return;
87[(bb) the return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report;]
(c) the return is accompanied by proof of
(i) the tax, if any, claimed to have been deducted 87a[or collected] at source 88[before the 1st day of April, 89[2008]] and the advance tax and tax on self-assessment, if any, claimed to have been paid :
90[Provided that where the return is not accompanied by proof of the tax, if any, claimed to have been deducted 90a[or collected] at source, the return of income shall not be regarded as defective if
(a) a certificate for tax deducted was not furnished under section 203 to the person furnishing his return of income;
The following clause (a) shall be substituted for the existing clause (a) of proviso to sub-clause (i) of clause (c) in the Explanation to sub-section (9) of section 139 by the Finance Act, 200, w.e.f. 1-4-2007 :
(a) a certificate for tax deducted or collected was not furnished under section 203 or sectio 206C to the person furnishing his return of income;
(b) such certificate is produced within a period of two years specified under sub-section (14) of section 155;]
(ii) the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974);
(d) where regular books of account are maintained by the assessee, the return is accompanied by copies of
(i) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet;
(ii) in the case of a proprietary business or profession, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals;
(e) where the accounts of the assessee have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditors report 91[and, where an audit of cost accounts of the assessee has been conducted, under section 233B92 of the Companies Act, 1956 (1 of 1956), also the report under that section];
(f) where regular books of account are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year :]
92a[Provided that the Board may, by rules made by it,
(a) dispense, for a class or classes of persons, with any of the conditions specified in clauses (a) to (f); or
(b) include any of the conditions specified in clauses (a) to (f) of this Explanation in the form of return prescribed under sub-section (1) or sub-section (6) of this section.]
(10) 93[Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.]
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Audit of cost accounts in certain cases.
233B. (1) Where in the opinion of the Central Government it is necessary so to do in relation to any company required under clause (d) of sub-section (1) of section 209 to include in its books of account the particulars referred to therein, the Central Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959) :
Provided that if the Central Government is of opinion that sufficient number of cost accountants within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959), are not available for conducting the audit of the cost accounts of companies generally, that Government may, by notification in the Official Gazette, direct that, for such period as may be specified in the said notification, such chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), as possesses the prescribed qualifications, may also conduct the audit of the cost accounts of companies, and thereupon a chartered accountant possessing the prescribed qualifications may be appointed to audit the cost accounts of the company.
(2) The auditor under this section shall be appointed by the Board of directors of the company in accordance with the provisions of sub-section (1B) of section 224 and with the previous approval of the Central Government :
Provided that before the appointment of any auditor is made by the Board, a written certificate shall be obtained by the Board from the auditor proposed to be so appointed to the effect that the appointment, if made, will be in accordance with the provisions of sub-section (1B) of section 224.
(3) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 224.
(4) An auditor shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under sub-section (1) of section 227 and such auditor shall make his report to the Central Government in such form and within such time as may be prescribed and shall also at the same time forward a copy of the report to the company.
(5) (a) A person referred to in sub-section (3) or sub-section (4) of section 226 shall not be appointed or re-appointed for conducting the audit of the cost accounts of a company.
(b) A person appointed, under section 224, as an auditor of a company, shall not be appointed or re-appointed for conducting the audit of the cost accounts of that company.
(c) If a person, appointed for conducting the audit of cost accounts of a company, becomes subject, after his appointment, to any of the disqualifications specified in clause (a) or clause (b) of this sub-section, he shall, on and from the date on which he becomes so subject, cease to conduct the audit of the cost accounts of the company.
(6) Upon receipt of an order under sub-section (1), it shall be the duty of the company to give all facilities and assistance to the person appointed for conducting the audit of the cost accounts of the company.
(7) The company shall, within thirty days from the date of receipt of a copy of the report referred to in sub-section (4), furnish the Central Government with full information and explanations on every reservation or qualification contained in such report.
(8) If, after considering the report referred to in sub-section (4) and the information and explanations furnished by the company under sub-section (7), the Central Government is of opinion that any further information or explanation is necessary, that Government may call for such further information and explanation and thereupon the company shall furnish the same within such time as may be specified by that Government.
(9) On receipt of the report referred to in sub-section (4) and the informations and explanations furnished by the company under sub-section (7) and sub-section (8), the Central Government may take such action on the report, in accordance with the provisions of this Act or any other law for the time being in force, as it may consider necessary.
(10) The Central Government may direct the company whose cost accounts have been audited under this section to circulate to its members, along with the notice of the annual general meeting to be held for the first time after the submission of such report, the whole or such portion of the said report as it may specify in this behalf.
(11) If default is made in complying with the provisions of this section, the company shall be liable to be punished with fine which may extend to five thousand rupees, and every officer of the company who is in default, shall be liable to be punished with imprisonment for a term which may extend to three years, or with fine which may extend to fifty thousand rupees, or with both.
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Appearance by authorised representative.2
3288. (1) Any assessee who is entitled or required to attend before any income-tax authority or the Appellate Tribunal in connection with any proceeding under this Act otherwise than when required under section 131 to attend personally for examination on oath or affirmation, may, subject to the other provisions of this section, attend by an authorised representative.
4(2) For the purposes of this section, “authorised representative” means a person authorised by the assessee in writing to appear on his behalf, being—
(i) a person related to the assessee in any manner, or a person regularly employed by the assessee; or
(ii) any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings; or
(iii) any legal practitioner who is entitled to practise in any civil court in India; or
(iv) an accountant; or
(v) any person who has passed any accountancy examination recognised in this behalf by the Board5; or
(vi) any person who has acquired such educational qualifications as the Board may prescribe6 for this purpose; or
7[(via) any person who, before the coming into force of this Act in the Union territory of Dadra and Nagar Haveli, GoaV, Daman and Diu, or Pondicherry, attended before an income-tax authority in the said territory on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee; or]
(vii) any other person who, immediately before the commencement of this Act, was an income-tax practitioner within the meaning of clause (iv) of sub-section (2) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), and was actually practising as such.
Explanation.—In this section, “accountant” means a 8chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 2269 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.
(3) 10[***]
(4) No person—
(a) who has been dismissed or removed from Government service after the 1st day of April, 1938; or
(b) who has been convicted of an offence connected with any income-tax proceeding or on whom a penalty has been imposed under this Act, other than a penalty imposed on him under 1[clause (ii) of sub- section (1) of] section 271; or
(c) who has become an insolvent,
shall be qualified to represent an assessee under sub-section (1), for all times in the case of a person referred to in sub-clause (a)*, for such time as the 12[Chief Commissioner or Commissioner] may by order determine in the case of a person referred to in sub-clause (b)*, and for the period during which the insolvency continues in the case of a person referred to in sub-clause (c)*.
(5) If any person—
(a) who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has in relation to his right to practise as a legal practitioner or accountant, as the case may be;
13(b) who is not a legal practitioner or an accountant, is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, the prescribed authority14 may direct that he shall thenceforth be disqualified to represent an assessee under sub-section (1).
(6) Any order or direction under clause (b) of sub-section (4) or clause (b) of sub-section (5) shall be subject to the following conditions, namely :—
(a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;
(b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and
(c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.
(7) A person disqualified to represent an assessee by virtue of the provisions of sub-section (3) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), shall be disqualified to represent an assessee under sub-section (1).
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Audit of accounts of certain persons carrying on business or profession.
7944AB. 80Every person,—
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees in any previous year 81[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any 82[previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD or section 44AE or section 44F 83[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year,] 84[***]
get his accounts of such previous year 85[***] audited by an accountant before the specified date and 86[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
87[Provided that this section shall not apply to the person, who derives income of the nature referred to in 88[***] section 44B or 89[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :
Provided further that in a case where such person is required by or under any other law to get his accounts audited 90[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 91[furnishes by] that date the report of the audit as required under such other law and a further report 92[by an accountant] in the form prescribed under this section.
Explanation.—For the purposes of this section,—
(i) “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288;
93[(ii) “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 31st day of October of the assessment year.]]
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Central excise Act 1944

14A. Special audit in certain cases.- (1) If at any stage of enquiry, investigation or any other proceedings before him, any Central Excise Officer not below the rank of an Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or determined by a manufacturer or any person, he may, with the previous approval of the Chief Commissioner of Central Excise, direct such manufacturer or such person to get the accounts of his factory, office, depots, distributors or any other place, as may be specified by the said Central Excise Officer, audited by a cost accountant, nominated by the Chief Commissioner of Central Excise in this behalf.
(2) The cost accountant, so nominated shall, within the period specified by the Central Excise Officer, submit a report of such audit duly signed and certified by him to the said Central Excise Officer mentioning therein such other particulars as may be specified:
Provided that the Central Excise Officer may, on an application made to him in this behalf by the manufacturer or the person and for any material and sufficient reason, extend the said period by such further period or periods as he thinks fit; so, however, that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed one hundred and eighty days from the date on which the direction under sub-section (1) is received by the manufacturer or the person.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the manufacturer or person aforesaid have been audited under any other law for the time being in force or otherwise.
(4) Omitted.
(5) The manufacturer or the person shall be given an opportunity of being heard in respect of any material gathered on the basis of audit under sub-section (1) and proposed to be utilised in any proceedings under this Act or rules made thereunder.
Explanation.—For the purpose of this section, "cost accountant" shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959).]
14AA. Special audit in cases where credit of duty availed or utilised is not within the normal limits, etc.- (1) If the Commissioner of Central Excise has reason to believe that the credit of duty availed of or utilised under the rules made under this Act by a manufacturer of any excisable goods—
(a) is not within the normal limits having regard to the nature of the excisable goods produced or manufactured, the type of inputs used and other relevant factors, as he may deem appropriate;
(b) has been availed of or utilised by reason of fraud, collusion or any wilful mis-statement or suppression of facts,
he may direct such manufacturer to get the accounts of his factory, office, depot, distributor or any other place, as may be specified by him, audited by a cost accountant nominated by him.
(2) The cost accountant so nominated shall, within the period specified by the Commissioner of Central Excise, submit a report of such audit duly signed and certified by him to the said Commissioner mentioning therein such other particulars as may be specified.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the said manufacturer aforesaid have been audited under any other law for the time being in force or otherwise.
(4) Omitted.
(5) The manufacturer shall be given an opportunity of being heard in respect of any material gathered on the basis of audit under sub-section (1) and proposed to be utilised in any proceedings under this Act or rules made thereunder.
Explanation.—For the purpose of this section, "cost accountant" shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959).]