The Institute of Chartered Accountants of India ( ICAI ) has postponed the mandatory use of the UDIN by the Chartered Accountants from 1st February 2019. Earlier, the ICAI has said that UDIN by the Chartered Accountants is compulsory from 1st January 2019.
UDIN i.e. Unique Document Identification Number is to secure the certificates/documents attested/certified by practicing Chartered Accountants and for tracing forged/wrong documents prepared by any third person misrepresenting himself as a Chartered Accountant.
The ICAI informed that for this prestigious project of UDIN, ICAI has engaged Tata Consultancy Services (TCS) who is also automating and will maintain the life cycle of CA Members and Students making them largely online on a digital platform.
“To enable TCS does the huge data migration and data audit which will require around 30 days before the UDIN Platform becomes mandatory, Central Council of ICAI has decided to mandate UDIN w.e.f 1st Feb. 2019 in a phased manner as against the earlier announced date of 1st Jan. 2019,” the ICAI said in an announcement.
The Division Bench of Hon’ble Calcutta High Court had passed an order on 21st June 2018 in the matter of ITAT 22/2015 in respect of Binod Kumar Agarwala vs Commissioner of Income Tax wherein ICAI was directed to initiate appropriate action against the concerned Chartered Accountants firm.
The High Court while passing the orders observed that the firm had prepared Balance Sheet of the assessee i.e. Shri Binod Kumar Agarwala by projecting a rosy picture as to the creditworthiness of the assessee for the purpose of availing credit facilities from the Bank. The ICAI, on the basis of the orders of Hon’ble High Court, issued a show cause notice to the Firm calling upon its explanation in this regard.
However, the said Firm of Chartered Accountants has vehemently denied stating that their Firm had not prepared those documents and their signatures and stamp has been forged. The firm had also submitted of having filed an FIR with Kharagpur Police and a sworn affidavit affirming their non-association in this matter. However, Director (Discipline), ICAI is further examining the matter. It may also be further stated of late, an increasing trend to forge the stamp and signature of Chartered Accountants was seen.
ICAI, as the regulator of the accountancy profession, as a proactive step, has introduced Unique Document Identification Number (UDIN) and it will be mandatory for all practicing Chartered Accountants to register all certificates issued by them with UDIN portal which can be verified by users/stakeholders.
