The Board of Discipline of the Institute of Chartered Accountants of India ( ICAI ) in a recent matter reprimanded a Chartered Accountant ( CA ) owing to his responsibility in alleged tax evasion, effectuating bogus entries and causing loss to the Government Exchequer.
The instant Complaint was filed by the Proprietor of a Patna-based garments dealer against the Respondent CA, one of two partners of a CA firm who had been employed by the Complainant firm for financial services.
Boost Your GST Skills: Master Notice Responses & Drafting – Enroll Now
It was alleged by the Complainant that the Respondent and his Partner CA had made fraudulent use of the Taxpayer Identification Number ( TIN ), User ID and Password of the Complainant’s firm to show a turnover in the range of Rs.12-13 Crores, leading to a manipulation of tax liability.
It was submitted that First Information Reports ( FIRs ) have already been registered in this regard with the same undergoing investigation before the concerned investigating agency at Patna.
The Complainant submitted before ICAI that the confidential credentials of his firm including TIN were supplied to the Respondent’s email unbeknownst to him by a part-time accountant, which were then misused to project a turnover of Rs. 14 Crore for the Complainant’s firm against supply of stone chips to a construction company.
Boost Your GST Skills: Master Notice Responses & Drafting – Enroll Now
Respondent CA, in return submitted before ICAI that the Complainant has not been able to adduce any substantive evidence pointing towards his collusion in the tax evasion, saving FIRs and counter-FIRs registered regarding bogus filing of sales tax returns.
The Board of Discipline of the Institute of Chartered Accountants of India constituted by CA. Rajendra Kumar P, Presiding Officer, Dolly Chakrabarty ( IAAS, Retd. ), Government Nominee and CA. Priti Savla, Member observed that the Respondent had committed gross violations of his duties by sharing the Complainant’s credentials with a completely unrelated third-party who had assured help in filing the Complainant’s sales tax returns.
The Board further expressed that the Respondent, being a professional in his line of work ought to have exercised due care and diligence and practiced professional scepticism, but further observed that the Respondent had been in his initial years of work as a CA professional and had not yet been weathered by the nitty-gritties of the profession.
Boost Your GST Skills: Master Notice Responses & Drafting – Enroll Now
In light of the Board’s observation that the Respondent CA had faltered in fulfilling his responsibility towards society’s trust, faith and reliance, the Respondent was held ‘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.
The Board, while passing its order refrained from commenting on the civil or criminal nature of the Respondent’s actions and instead limited itself to “Reprimanding” the CA.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
