Rule 172 requires every Chief Commissioner to keep panels of accountants and cost accountants and sets an hourly range for the expenses of a section 268(5) audit or inventory valuation, with time-sheets and a check on hours billed.
172
Rules 2026 · Rule 172
Procedure for purposes of determining expenses for audit or inventory valuation
Rules 131-200
Panels (sub-rule 1). Every Chief Commissioner of Income-tax maintains a panel of accountants from the persons in section 515(3)(b), and a panel of cost accountants from the persons in section 268(13).
Expenses (sub-rules 2 and 3). Where the Assessing Officer directs an audit under section 268(5)(i) or inventory valuation under section 268(5)(ii), the expenses — including the remuneration of the accountant or cost accountant and qualified, semi-qualified and other assistants — must be not less than Rs. 3,750 and not more than Rs. 7,500 (both inclusive) for every hour of the period the Assessing Officer specifies under section 268(8), (9) or (10), expressed as the number of hours required to complete the report.
Billing (sub-rules 4 and 5). The accountant or cost accountant keeps a time-sheet and submits it with the bill to the Chief Commissioner or Commissioner, who ensures the hours claimed are commensurate with the size and quality of the report.