The Regional Director of the Ministry of Corporate Affairs ( MCA ) has rejected the application of the Institute of Chartered Accountants of India ( ICAI ) against Institute of Chartered Tax Practitioners India ( ICTPI ) over the name’s similarity.
With regards to the preliminary objection of the ICAI to the use of the word “Chartered” in ICTPI, the director has observed that “the word Chartered is a generic word and is used frequently in different connotations and the contention of the applicant that it resonates a professional qualification backed by Statutory provisions, is not acceptable. There are many companies with the word “Chartered” in their names which are not backed by any statute.”
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ICAI, established in 1949, regulates the chartered accountancy profession in India, with over 400,000 members globally. In contrast, the Institute of Chartered Tax Practitioners India (ICTPI), incorporated as a non-profit entity in 2020, offers courses for tax practitioners. The institute raised concerns over public confusion, alleging it had received several inquiries suggesting that ICTPI was mistakenly perceived as being affiliated with or endorsed by ICAI.
ICAI contended that ICTPI’s “Chartered Tax Practitioners Course” was misleading the public into believing it was affiliated with or endorsed by ICAI. It argued that ICTPI’s name closely resembled its own, violating Section 24A of the Chartered Accountants Act, 1949, which prohibits the use of ICAI’s name or any deceptively similar variant. ICAI emphasized that only its members are legally authorized to conduct audits and represent clients before tax authorities. It further claimed that ICTPI’s course closely mirrored the chartered accountancy program and amounted to passing off, potentially causing irreparable damage to ICAI’s reputation and creating a false impression of statutory backing.
ICTPI had defended itself on the basis that the Central Registration Centre had issued its name clearance after due examination and that it had been operating independently for over three years and built up its own identity.
Being a non-profit making body with altruistic intentions, ICTPI had asserted that its courses are recognized by the National Skill Qualification Committee as part of government skill development schemes.
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ICTPI argued that “Chartered Accountant” and “Chartered Tax Practitioner” are distinct professional designations and that there was no evidence of public confusion to support a passing off action. ICTPI further asserted that it has registered trademarks and asserted that ICAI, being a statutory body and not a company formed under the MCA,cannot claim such services under company law.
While the application was pending before the Regional Director, ICAI filed a writ petition before the High Court of Karnataka at Bengaluru. The High Court initially issued an interim order staying certain operations of ICTPI but later directed the Regional Director to hear the matter and directed both parties to appear before the RD.
The Regional Director, after examining the matter in detail, dismissed ICAI’s application. The RD noted that ICTPI’s name is not identical to ICAI’s and that the fields of operation of both institutes are completely different. Chartered Accountants have a monopoly in audit and accounts, while tax practitioners deal exclusively in taxation matters. The RD also pointed out that ICAI itself admitted that one does not need any professional qualification to be a tax practitioner, undermining ICAI’s claim to exclusivity in tax practice.
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The director observed that the individuals who join ICTPI’s courses are already registered tax practitioners and are well-educated, making it unlikely that they would be misled into believing that ICTPI is affiliated with ICAI or backed by a statute. The RD also noted that ICTPI has a registered trademark in its name.
The director noted the submission of the ICTPI it had addressed ICAI’s concerns by filing affidavits with the High Court. In the affidavits, ICTPI committed to adding disclaimers on its website and course material. The disclaimers expressly state that ICTPI is not an affiliate of ICAI and does not provide licenses for tax or customs practice. The Regional Director rejected ICAI’s application and held that the term “Chartered” is a generic term applied in various contexts and does not invariably signify a legal qualification.
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