ICAI debars CA for 90 Days for False Declaration on INC-22 Using Rental Agreement and Utility Bills [Read Order]

The Institute of Chartered Accountants of India ( ICAI ) has debarred Chartered Accountant ( CA ) for a period of 90 days and imposed a fine of Rs. 20,000 for professional misconduct. The institute noted that the CA made false declarations on INC-22 using the rental agreement and the utility bills.

The case revolved around the certification and filing of documents related to M/s NITP Marketing Services Private Limited for the financial year 2018-19.

The charges filed by the Registrar of Companies, Goa, against CA included the uploading of unsigned Balance Sheets through e-form AOC-4 and certifying e-form INC-22 without personally verifying the registered office of the company. These actions were deemed as gross negligence in the conduct of professional duties.

Following the findings of professional misconduct, CA was granted an opportunity to present his case before the disciplinary committee. During the hearing held on 19th March 2024, he made verbal submissions, citing various reasons including the timing of the physical verification of the registered office and the reliance on documents provided by the company.

However, the committee found his submissions insufficient to refute the charges of professional misconduct. It was noted that CA had failed to exercise due diligence in his professional responsibilities. Despite the certification of the INC-22 form, it was revealed that he had not personally visited the registered office and instead relied solely on the rental agreement and utility bill provided by the company.

The committee concluded that CA had violated the professional standards outlined in the Chartered Accountants Act, 1949. As per the committee's findings, his actions constituted a failure to exercise due diligence, thus falling within the scope of professional misconduct.

Considering the gravity of the matter, the ICAI disciplinary committee deemed it necessary to impose appropriate punishment. Consequently, CA name was removed from the Register of Members for a period of 90 days.

Additionally, he has been fined Rs. 20,000, with a stipulation to pay within 90 days of receiving the order. Failure to comply with the fine will result in a further 30-day removal from the Register of Members.

To Read the full text of the Order CLICK HERE

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