{"id":26735,"date":"2024-05-29T15:20:03","date_gmt":"2024-05-29T09:50:03","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=26735"},"modified":"2025-10-12T22:01:04","modified_gmt":"2025-10-12T16:31:04","slug":"icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/","title":{"rendered":"ICAI Disciplinary Action on CA -False Declaration on INC22"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d018d444bae\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d018d444bae\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#ICAI_Disciplinary_Action_on_Chartered_Accountant_for_False_Declaration_on_INC-22\" title=\"ICAI Disciplinary Action on Chartered Accountant for False Declaration on INC-22\">ICAI Disciplinary Action on Chartered Accountant for False Declaration on INC-22<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Certification_and_Filing_of_Documents\" title=\"Certification and Filing of Documents \">Certification and Filing of Documents <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Allegations\" title=\"Allegations \">Allegations <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#ICAIs_disciplinary_committee_found_in_Investigation_and_Findings\" title=\"ICAI&#8217;s disciplinary committee found in Investigation and Findings\">ICAI&#8217;s disciplinary committee found in Investigation and Findings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Disciplinary_Hearing_and_Decision\" title=\"Disciplinary Hearing and Decision\">Disciplinary Hearing and Decision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#The_ICAI_disciplinary_committee_imposed_the_following_penal_Consequences\" title=\"The ICAI disciplinary committee imposed the following penal Consequences\">The ICAI disciplinary committee imposed the following penal Consequences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Importance_of_Due_Diligence_in_Chartered_Accountancy\" title=\"Importance of Due Diligence in Chartered Accountancy\">Importance of Due Diligence in Chartered Accountancy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Professional_Standards_and_Ethical_Obligations\" title=\"Professional Standards and Ethical Obligations\">Professional Standards and Ethical Obligations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Lessons_Learned_and_Best_Practices_for_CAs\" title=\"Lessons Learned and Best Practices for CAs\">Lessons Learned and Best Practices for CAs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/icai-disciplinary-action-on-ca-for-false-declaration-on-inc-22\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-24879\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Ca-da.-1.jpg\" alt=\"ICAI has unveiled a new logo\" width=\"1105\" height=\"1105\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Ca-da.-1.jpg 554w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Ca-da.-1-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Ca-da.-1-150x150.jpg 150w\" sizes=\"(max-width: 1105px) 100vw, 1105px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ICAI_Disciplinary_Action_on_Chartered_Accountant_for_False_Declaration_on_INC-22\"><\/span><span style=\"color: #000080;\"><strong>ICAI Disciplinary Action on Chartered Accountant for False Declaration on INC-22<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>ICAI has imposed significant disciplinary measures on CA for professional misconduct. The CA has been debarred for 90 days and fined Rs. 20,000 due to false declarations made on the e-form INC-22 using rental agreements and utility bills.<\/li>\n<li>This case, concerning the financial year 2018-19 for M\/s NITP Marketing Services Private Limited, highlights the critical importance of due diligence and the severe consequences of professional negligence.<\/li>\n<li>The ICAI&#8217;s actions in this case underscore its commitment to maintaining high professional standards and ensuring that its members adhere to ethical guidelines and statutory obligations.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Case Details<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Certification_and_Filing_of_Documents\"><\/span><span style=\"color: #000080;\"><strong>Certification and Filing of Documents <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The CA was responsible for certifying and filing essential documents for M\/s NITP Marketing Services Private Limited, specifically the e-form INC-22. This form is crucial for notifying the RoC about the physical address of a company, necessary for legal and correspondence purposes.<\/li>\n<li>The CA&#8217;s actions were found to be in violation of the professional standards expected of members of the ICAI. The false declarations on the INC-22 form, which is used for the notice of situation or change of situation of the registered office of a company, raised serious concerns about the integrity and reliability of the information provided by the CA.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Allegations\"><\/span><span style=\"color: #000080;\"><strong>Allegations <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The RoC in Goa raised concerns regarding the accuracy and authenticity of the documents submitted:<\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Uploading Unsigned Balance Sheets<\/strong>:<\/span> The CA allegedly uploaded unsigned balance sheets via e-form AOC-4.<\/li>\n<li><span style=\"color: #000080;\"><strong>Certification Without Verification<\/strong>:<\/span> The CA certified e-form INC-22 without personally verifying the registered office of the company, relying solely on the rental agreement and utility bills provided by the company.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ICAIs_disciplinary_committee_found_in_Investigation_and_Findings\"><\/span><span style=\"color: #000080;\"><strong>ICAI&#8217;s disciplinary committee found in Investigation and Findings<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The ICAI&#8217;s disciplinary committee found that the CA certified the INC-22 form without personally visiting the registered office of the company. Instead, the CA relied solely on the rental agreement and utility bills provided by the company, failing to perform necessary due diligence.<\/li>\n<li>The CA made false declarations on the INC-22 form, a serious breach of professional conduct. This was considered gross negligence and a violation of the professional standards outlined in the Chartered Accountants Act, 1949.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Disciplinary_Hearing_and_Decision\"><\/span><span style=\"color: #000080;\"><strong>Disciplinary Hearing and Decision<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>During the disciplinary hearing on March 19, 2024, the CA presented his case, citing reasons for his actions, including the timing of the physical verification and his reliance on documents provided by the company. However, the committee found these explanations insufficient. The CA&#8217;s failure to personally verify the registered office was deemed a significant breach of professional ethics and due diligence.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_ICAI_disciplinary_committee_imposed_the_following_penal_Consequences\"><\/span><span style=\"color: #000080;\"><strong>The ICAI disciplinary committee imposed the following penal Consequences<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The CA&#8217;s name was removed from the Register of Members for 90 days, prohibiting him from practicing as a Chartered Accountant during this period.<\/li>\n<li>CA was fined Rs. 20,000, payable within 90 days of receiving the order. Failure to comply with the fine would result in an additional 30-day removal from the Register of Members.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Importance_of_Due_Diligence_in_Chartered_Accountancy\"><\/span><span style=\"color: #000080;\"><strong>Importance of Due Diligence in Chartered Accountancy<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Due diligence is a critical responsibility for Chartered Accountants, ensuring the accuracy and integrity of financial reporting and compliance with legal requirements. This case emphasizes the risks of relying solely on client-provided documents without independent verification.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Professional_Standards_and_Ethical_Obligations\"><\/span><span style=\"color: #000080;\"><strong>Professional Standards and Ethical Obligations<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Chartered Accountants Act, 1949, outlines the professional standards and ethical obligations CAs must adhere to. The Chartered Accountants actions in this case violated these standards, leading to the disciplinary action by the ICAI. Maintaining trust and credibility in the profession requires strict adherence to these standards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lessons_Learned_and_Best_Practices_for_CAs\"><\/span><span style=\"color: #000080;\"><strong>Lessons Learned and Best Practices for CAs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Always conduct personal verification of critical information, such as a company&#8217;s registered office, before certifying documents. Relying solely on client-provided documents can lead to inaccuracies and legal issues.<\/li>\n<li>Maintain thorough and accurate records of all verifications and checks conducted. This documentation is crucial in case of disputes or investigations.<\/li>\n<li>Adhere strictly to the ethical guidelines and professional standards outlined in the Chartered Accountants Act, 1949. Avoid any form of professional misconduct, such as making false declarations or exhibiting gross negligence.<\/li>\n<li>Stay updated with the latest developments in laws, regulations, and professional standards. Continuous education and training help CAs remain informed about their responsibilities and best practices in the profession.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #000080;\"><strong>Conclusion <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Institute of Chartered Accountants of India (ICAI) has debarred a Chartered Accountant for a period of 90 days and imposed a fine of Rs. 20,000. The disciplinary action was taken in response to false declarations made by the Chartered Accountants on form INC-22, which involved using a rental agreement and utility bills. This incident underscores the critical importance of due diligence and adherence to professional ethics within the field of Chartered Accountancy.<\/p>\n<p>The ICAI&#8217;s decision to debar the Chartered Accountants and levy a financial penalty serves as a stern reminder to all professionals in the field about the severe consequences of unethical practices. It reinforces the necessity for Chartered Accountants to perform their duties with utmost honesty, accuracy, and compliance with legal and regulatory requirements. This case highlights the essential role of ethical conduct and meticulous attention to detail in maintaining the trust and credibility of the profession.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ICAI Disciplinary Action on Chartered Accountant for False Declaration on INC-22 ICAI has imposed significant disciplinary measures on CA for professional misconduct. The CA has been debarred for 90 days and fined Rs. 20,000 due to false declarations made on the e-form INC-22 using rental agreements and utility bills. This case, concerning the financial year &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[10147],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/26735"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=26735"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/26735\/revisions"}],"predecessor-version":[{"id":30179,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/26735\/revisions\/30179"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=26735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=26735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=26735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}