ICAI finds CA  guilty of Misappropriating Funds of company to tune of Rs 7 crores  by Forging Documents

The Institute Of Chartered Accountant of India (ICAI) found chartered accountants were guilty of misappropriating funds of the company to the tune of Rs 7 crores by forging documents.

The board found that Chartered Accountant (CA) is guilty of Other Misconduct falling within the meaning of Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with section 22 of the Act.

The Complainant being founder Director of Premium Acres was dealing with a real estate company in 2009 of which Shri Parminder Singh Sehgal was the CEO who allured him to do own business in equal partnership. The Complainant agreed and accordingly, on 5th January 2010, a company was incorporated in the name of M/s Premium Acres Infratech Pvt Ltd.

Being a chartered accountant CA. Parminder Singh Sehga of the company maintained the and handled all records of the company.

It was decided that the Complainant would handle the sales and marketing of the business while CA Parminder Singh Sehgal,would handle the documentation work in association with the Respondent CA . Further on recommendation of CA. Parminder Singh Sehgal, obtained the services of the Respondent for the purpose of filing his Income Tax Returns as well as for his companies.

The Complainant was regularly depositing tax by giving tax amount through account payee cheques/ RTGS/ NEFT to the Respondent. It was further stated that , it came to his notice that the Respondent in connivance with other business associates committed various fraudulent activities with respect to the Complainant’s Company in respect to which FIR no. 38 dated 31st January 2015 and FIR no 164 dated 13th April 2016 was registered due to fraudulent acts of the Respondent.

Therefore the respondent misappropriated funds of the company to the tune of Rs 7 crores and removed the Complainant and his wife illegally from the directorship of the company. The Respondent further tried to take possession of the office of the company by forging documents.

The respondent objected to the submission of the complainant and argued that the returns for the Assessment Year 2009-2010 and 2010-2011 were filed by the Complainant himself and these returns were filed much before the date of the fund were transferred to the Respondent. These returns were shown to have been filed just to implicate the Respondent without jurisdiction in Delhi. It shows the mala fide intentions of the Complainant to harass the Respondent.

The board the bone of contention in the instant case is that the ITRs acknowledgement of the Complainant for the AYs 2009-2010 and 2010-2011 are showing that the income tax has been deposited, whereas the Income Tax Department is denying to have received the payment of tax in the account of the Complainant.

The Board further noted that the Complainant paid Rs. 7,00,000/- through cheque dated 13.05.2011 and Rs. 6,64,000/- through RTGS dated 26th May 2011 to the Respondent for A.Y. 2009-2010. Cheque dated 29th April 2011 for Rs. 4,63,824/- for assessment year 2010-2011 was also paid to the Respondent by the Complainant.

The Board also noted that as per the Income Tax Return acknowledgement for the AY 2011-12, the return had been filed using the digital signature of the Complainant on 29th September 2011.

Further as per the certified true copy of the letter addressed by the Complainant to the Respondent firm, his digital signature/or the documents for his digital signature were with the Respondent firm and the Respondent firm was authorized to keep it in safe custody for the purpose of income tax returns, service tax returns and filing of necessary documents with the Registrar of Companies for the companies in which he is designated as a director, the list of which included 10 Pvt. Ltd. companies and personal income tax returns.

Thus,in conclusion in the considered opinion of the board the respondent is GUILTY of Other Misconduct falling within the meaning of Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with section 22 of the said Act.

To Read the full text of the Order CLICK HERE

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