{"id":2704,"date":"2016-09-20T17:28:54","date_gmt":"2016-09-20T11:58:54","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2704"},"modified":"2021-11-02T11:53:56","modified_gmt":"2021-11-02T06:23:56","slug":"any-dishonest-act-of-ca-isnt-a-professional-misconduct-if-it-is-done-in-individual-capacity","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/any-dishonest-act-of-ca-isnt-a-professional-misconduct-if-it-is-done-in-individual-capacity\/","title":{"rendered":"Any dishonest act of CA isn\u2019t a professional misconduct"},"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-69d7424895328\" 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-69d7424895328\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/any-dishonest-act-of-ca-isnt-a-professional-misconduct-if-it-is-done-in-individual-capacity\/#Chartered_Accountant_Act_1949\" title=\"Chartered Accountant Act, 1949:\">Chartered Accountant Act, 1949:<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/any-dishonest-act-of-ca-isnt-a-professional-misconduct-if-it-is-done-in-individual-capacity\/#Facts\" title=\"Facts:\u00a0\">Facts:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/any-dishonest-act-of-ca-isnt-a-professional-misconduct-if-it-is-done-in-individual-capacity\/#On_appeal_the_High_Court_held_as_under\" title=\"On appeal the High Court held as under:\">On appeal the High Court held as under:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_8969\" aria-describedby=\"caption-attachment-8969\" style=\"width: 559px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/09\/11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8969\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/09\/11.jpg\" alt=\"www.carajput.com; CA\" width=\"559\" height=\"386\" \/><\/a><figcaption id=\"caption-attachment-8969\" class=\"wp-caption-text\">www.carajput.com; CA<\/figcaption><\/figure>\n<h1><span class=\"ez-toc-section\" id=\"Chartered_Accountant_Act_1949\"><\/span><strong>Chartered Accountant Act, 1949:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Where a CA sold his shares but continued to receive dividends declared by the Company by cheating upon transferee, such activity could not be said done in relation to practice as CA as such act of dishonesty was done in individual capacity.<\/p>\n<p>Thus, disciplinary committee\u2019s proposal to remove CA\u2019s name from registers of members of ICAI for 6 months was to be set aside.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Facts\"><\/span><strong>Facts:<\/strong><strong>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>A Chartered Accountant sold his shares in November 1999 however, share transfer deed for transfer of shares was lodged on November 04, 2004.<\/li>\n<li>In the meantime, CA continued to receive dividend declared by company for 5 years<\/li>\n<li>The transferee made complaint about this conduct of CA before the Disciplinary Committee of the Institute of Chartered Accountants.<\/li>\n<li>The Disciplinary Committee found that the conduct of CA was wholly unworthy and amounted to professional misconduct.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"On_appeal_the_High_Court_held_as_under\"><\/span><strong>On appeal the High Court held as under:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>In the instant case the respondent was acting as an individual in his dealings with the complainant which were purely commercial.<\/li>\n<li>While selling the shares held by him the respondent was not acting as a Chartered Accountant. He was not discharging any function in relation to his practice as a Chartered Accountant.<\/li>\n<li>In the decision reported as AIR 1958 SC 72 Council of Institute of Chartered Accountants &amp; Anr. vs. B. Mukhreja, a Chartered Accountant who had been appointed as a liquidator was held liable for professional misconduct on the reasoning that Regulation 78 provided for a Chartered Accountant to act as a liquidator and thus while acting as a liquidator Sh. B. Mukhreja would be deemed to be in practice as a Chartered Accountant.<\/li>\n<li>The judgment brings out that the acts of omission or commission must relate to the offender acting as a Chartered Accountant and rendering service for remuneration and must be engaged in an activity which a Chartered Accountant would be entitled to be engaged in, wearing the hat of a Chartered Accountant.<\/li>\n<li>For example, a Chartered Accountant may drive rashly and negligently and in the process may kill a human being. This conduct would be an offence, but not a misconduct for the purposes of the Act<\/li>\n<li>The Disciplinary Committee\u2019s proposal to remove CA\u2019s name from registers of members of ICAI for 6 months was to be set aside. &#8211;<strong>[2016] 72\u00a0<\/strong><a href=\"https:\/\/taxmann.com\/\"><strong>com<\/strong><\/a><strong>\u00a0197 (Delhi)<\/strong><\/li>\n<\/ol>\n<p><!--more--><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Chartered Accountant Act, 1949: Where a CA sold his shares but continued to receive dividends declared by the Company by cheating upon transferee, such activity could not be said done in relation to practice as CA as such act of dishonesty was done in individual capacity. Thus, disciplinary committee\u2019s proposal to remove CA\u2019s name &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172,15],"tags":[4896,4895,4897],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2704"}],"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=2704"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2704\/revisions"}],"predecessor-version":[{"id":18297,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2704\/revisions\/18297"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}