ICAI Reprimands Chartered Accountant for Signing Tax Audit Reports Without Certificate of Practice
Disciplinary Committee Finds Professional Misconduct
Revenue Authorities Flagged Irregularities in Section 44AB Audits
By Legal Reporter
New Delhi: February 17, 2026:
The Institute of Chartered Accountants of India (ICAI) has reprimanded a Mumbai-based Chartered Accountant for signing and uploading tax audit reports under Section 44AB of the Income Tax Act, 1961 without holding a valid Certificate of Practice (COP). The disciplinary action, announced in February 2026, underscores ICAI’s commitment to maintaining professional integrity and ensuring that only authorized members carry out statutory audits.
The Case: CA Kamlesh Narayansinh Surati
The matter came to light after the Taxation Audits Quality Review Board (TAQRB), acting on information provided by the Central Board of Direct Taxes (CBDT), flagged irregularities in tax audit reports filed during FY 2010–11.
It was alleged that CA Kamlesh Narayansinh Surati, based in Mumbai, had conducted and uploaded two tax audit reports without holding a valid COP at the relevant time. The ICAI’s Disciplinary Committee (Bench–II) examined the case and concluded that the act amounted to professional misconduct under the Chartered Accountants Act, 1949.
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Tribunal’s Findings
The ICAI held that:
- COP is mandatory: No member can undertake statutory audits without a valid Certificate of Practice.
- Violation of professional standards: Signing tax audit reports without COP undermines the credibility of the profession.
- Misrepresentation of authority: Uploading reports on the Income Tax portal without authorization misleads stakeholders.
The committee reprimanded the CA and directed compliance with ICAI’s professional standards going forward.
Wider Context: Other Similar Cases
This is not an isolated incident. In another case, CA Arun Pandharinath Lanke was found guilty of misconduct for signing tax audit reports while holding only a part-time COP, which does not permit statutory audits.
Additionally, ICAI has reprimanded members for accepting tax audit assignments without proper communication with existing auditors, highlighting the broader issue of professional ethics in tax audits.
Importance of Certificate of Practice
The Certificate of Practice is a statutory requirement for Chartered Accountants who wish to engage in public practice, including tax audits, statutory audits, and certification work.
Key points:
- Full-time COP: Required for statutory audits.
- Part-time COP: Allows limited practice but not statutory audits.
- No COP: Members cannot undertake any audit or certification work.
By enforcing strict compliance, ICAI ensures that only qualified and authorized professionals handle sensitive financial audits.
Impact of the Ruling
The disciplinary action has several implications:
- Strengthens accountability: Reinforces ICAI’s role as a regulator of professional conduct.
- Protects stakeholders: Ensures that businesses and tax authorities rely on valid audit reports.
- Deters misconduct: Sends a strong message to members about the consequences of violating ICAI rules.
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Reactions
- ICAI officials emphasized that professional misconduct will not be tolerated, regardless of the scale of violation.
- Tax experts welcomed the ruling, noting that unauthorized audits compromise the integrity of financial reporting.
- Practicing CAs said the decision highlights the importance of maintaining valid COP status and adhering to ICAI’s code of ethics.
What Lies Ahead
The ruling is expected to influence ICAI’s disciplinary framework in the future. Possible developments include:
- Stricter monitoring of tax audit uploads through CBDT’s portal.
- Enhanced coordination between ICAI and CBDT to detect irregularities.
- Awareness campaigns to educate members about COP requirements.
Conclusion
The ICAI’s reprimand of a Chartered Accountant for signing tax audit reports without a valid COP marks a significant step in safeguarding professional standards. By holding members accountable, ICAI reinforces the principle that statutory audits must be conducted only by authorized professionals. The ruling strengthens trust in India’s auditing framework and ensures that the profession remains credible and transparent.
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