The Institute of Chartered Accountants of India ( ICAI ) observed that Using the Logo of Geneva Group International is in Contravention of Provision under the Chartered Accountant ( CA )Act,1949 and reprimanded the Chartered Accountant ( CA ) for the same.
An action under Section 21A (3) of the Chartered Accountants Act,1949 was contemplated against CA. Upendra Nath Marwah and communication dated 4th January 2024 was addressed to him thereby granting him an opportunity of being heard on 11th January 2024.
The Respondent vide email dated 10th January 2024 expressed his inability to appear for the hearing as he is not keeping well and thus, sought for adjournment. Since no documentary evidence in support of the same was provided by the Respondent, his request was not acceded to by the Board, Accordingly, the Board decided to consider his case for award of punishment.
It was alleged that the Respondent firm in its letterhead and the visiting card used by its Senior Partner, CA, U.N. Marwah, has used the logo of Geneva Group International ( GGI ) and also the expression, “A Member of Geneva Group International”.
The allegation of the extant case relates to disclosure of international affiliation and the fact of the matter is that the provision as envisaged under Item (7) has nothing to do with disclosure of an international affiliation. It prohibited advertisement of professional attainment or services and the expression professional attainment’ refers to professional accomplishment or achievement.
Using the expression I A Member of Geneva Group International l or its logo does not tantamount to an advertisement, The Respondent Firm is distinct, independent and different from GGI, a position which has already been disclosed to ICAI and acknowledged. Mere since the Respondent Firm is a member of GGI does not mean that it is an achievement/accomplishment of the Firm of such a nature which if disclosed would be tantamount to a violation of the Code of Ethics Guidelines. GGI is an independent alliance of professionals, including Chartered Accountants, and Management consultants worldwide. There is no prohibition in the Act to disclose a relation with any international entity, either in Item (7) or any other provision.
The Board also noted that the Council has permitted Network amongst the firms registered with the Institute, A Network is neither permitted to advertise nor to use the logo. The firms constituting a Network are permitted to use the words” Affiliates Members of ( a Network of Indian CA firms ) on their professional stationery. Once the relationship of a network arises, whether registered or not with the Institute, it will be necessary for such a network to comply with all applicable ethical requirements prescribed by the Institute from time to time.
The Board also noted that the Council at its meeting held in December 1997, decided that the use of logo/monogram of any kind/form/style/design/colour etc, whatsoever on any display material or medium e.g. paper stationery, document, visiting cards, magnetic devices, internet, signboard, by the members in practice and/or the firm of Chartered Accountants, be prohibited. Use/printing of member/firm name in any other manner tanta mounting to logo/monogram was also prohibited
The Coram is comprised of CA. Rajendra Kumar P, Ms Dolly Chakrabarty and CA. Priti Savla, Member viewed that the act on the part of the Respondent of using the logo of Geneva Group International ( GGI ) and also the expression, “A Member of Geneva Group International” is in contravention of Item (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949 and the remedial action on the part of the Respondent in ceasing to state in its Stationery/visiting cards the words “A member of Geneva Group International” cannot mitigate the efficacy of the alleged misconduct on the part of the Respondent as despite of being aware of the correspondences being made by the Institute since 2009 in respect of activities/functioning of Multinational Accounting Firms in contravention of the provisions of the Chartered Accountants Act, 1949.
The Respondent firm informed of taking the corrective step upon receipt of the Information letter from the Institute without providing the specific period since when the use of the same had been discontinued by the Respondent firm which indicates that the Respondent firm was in continuous use of the said letterhead and visiting card for various purposes. The Committee held the Respondent guilty in respect of the charge alleged.
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