ICAI reprimands CA Soliciting Clients by Advertising Free Services in Accounts/Tax/GST/Audit through WhatsApp Pamphlets

The Disciplinary Committee of Institute of Chartered Accountants of India (ICAI) has reprimanded the Chartered Accountant (CA) Sunil Goyal for soliciting the clients by advertising and offering free services in the areas of Accounts/Tax/Returns GST/ Audit/New Carriers through whatsapp pamphlets.

The said WhatsApp message was printed on pamphlet and circulated through WhatsApp containing the address of the Respondent along with his contact details. "Sunil Goyal, Chartered Accountant Team I00' was mentioned in the said pamphlet which clearly indicated that the Respondent is trying to show himself superior to others by mentioning the phrase Team 100 with an intention to solicit new clients through advertisement.

The Respondent-CA submitted that the impugned prima Facie Opinion dated 06 April, 2021 sent by letter dated 27th July, 2021 and received on 2nd August, 2021 whereby which Director(Discipline) had formed an opinion against the Respondent itself suffers from serious latches, the Director (Discipline) was legally bound to follow the Rules so notified vide Notification” dated 27/02/2007, whereby which Director (Discipline) could form the basis of the initiating the disciplinary proceedings against the professional like the Respondent.

The CA also contended that from the alleged pamphlet, no case is made out, portraying a distorted and incorrect picture of the facts of the case and in tum mislead the Director (Discipline), leading to an undue, irretrievable loss to the Respondent. The alleged pamphlet, a non-verifiable evidence is void ab initio and should have been dismissed at the very threshold.

The Respondent further referred following case laws to support his defence:-

i. The Hon'ble Delhi High Court in a case titled Shri Dinesh Gupta vs Shri Vishal Chandra Gupta & Anr. on 20th December, 2012 held that the role of Director (Discipline) is merely inquisitorial i.e. whether the complaint is to be closed or to be further investigated.

ii. A Division Bench of this Court in R,K. Sharma vs. Institute of Chartered Accountants of India 44 (1991) DLT 298 held that ICAI is only required to form a prima facie opinion whether a member is guilty of professional misconduct or not.

According to the observation of the board it is also not permissible for a member to address letters or circulars to persons who are likely to require services of a Chartered Accountant since it would tantamount to advertisement.

The board noted that the respondent-CA admitted that he himself shared the advertisement through whatsapp to his client. However, in another hand he also mentioned that he was ill-advised, ill prepared and filed in haste without reasons and justifications and that he had no role in the circulation of the message.

It was also noted that despite his express denial during the hearing of not being associated with the issue of the pamphlet, the Respondent did not take any action to identify as to who had misused his name in the pamphlet.

The Board also took into view the ICAI Guidelines No. I-CA(7)/ Council Guidelines/01/2008, dated 14th May, 2008 — Guidelines for Advertisement for the Members in practice wherein under Clause 4(ii) categorically states that "The write-up should not claim superiority over any other Member(s)/Firm(s)."

Further, Clause 4(x) states that "The write-up should not contain any information about achievements/award or any other position held."

Thus, the Board viewed that the use of such words/ expression tantamount to violation of said other conditions prescribed under Guidelines for advertisements for members in practice.

It was  held that CA. Sunil Kumar Goyal is Guilty of Professional Misconduct falling within the meaning of Items (6) and (7) of Part I of First Schedule to the Chartered Accountants Act, 1949 and thus reprimanded.

To Read the full text of the Order CLICK HERE

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