Section 172 — Procedure for purposes of determining expenses for audit or inventory valuation

(1) Every Chief Commissioner of Income-tax shall, for the purposes of section 268(5)(i) and (ii), shall maintain a panel of—
(a) accountants, out of the persons referred to in section 515(3)(b); and
(b) cost accountants, out of the persons referred to in section 268(13).
(2) Where the Assessing Officer directs—
(a) for audit under section 268(5)(i); or
(b) for inventory valuation under section 268(5)(ii),
the expenses of, and incidental to, audit or inventory valuation (including the remuneration of the accountant or cost accountant, qualified assistants, semi-qualified and other assistants, who may be engaged by such accountant or cost accountant), shall not be less than Rs. 3,750 and not more than Rs. 7,500 (bothinclusive) for every hour of the period as specified by the Assessing Officer under section 268(8) or (9) or (10), as the case may be.
(3) The period referred to in sub-rule (2) shall be specified in terms of the number of hours required for completing the report.
(4) The accountant or cost accountant referred to in section 268(5)(i) or (ii), shall maintain a time-sheet and submit it to the Chief Commissioner of Income-taxor Commissioner of Income-tax, along with the bill.
(5) The Chief Commissioner of Income-tax or the Commissioner of Income-tax shall ensure that the number of hours claimed for billing purposes iscommensurate with the size and quality of the report submitted by the accountant or cost accountant.