{"id":29005,"date":"2025-03-22T14:14:11","date_gmt":"2025-03-22T08:44:11","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29005"},"modified":"2025-12-17T00:02:07","modified_gmt":"2025-12-16T18:32:07","slug":"icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/","title":{"rendered":"ICAI Investigate on financial misconduct Non-Practicing CA&#8217;s"},"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-69d83c050c056\" 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-69d83c050c056\"  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\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#Bombay_High_Court_Directive_to_ICAI_for_former_CA_professional_ethics_enforcement\" title=\"Bombay High Court : Directive to ICAI for former CA professional ethics enforcement\">Bombay High Court : Directive to ICAI for former CA professional ethics enforcement<\/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\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#Key_Takeaways_from_the_Bombay_High_Court_Judgment\" title=\"Key Takeaways from the Bombay High Court Judgment: \">Key Takeaways from the Bombay High Court Judgment: <\/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\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#In_summary_Bombay_High_Court_ruling_on_ICAI_ethics_enforcement_on_former_CA\" title=\"In summary Bombay High Court ruling on ICAI ethics enforcement on former CA. \">In summary Bombay High Court ruling on ICAI ethics enforcement on former CA. <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#ICAI_FAQs_on_Auditors_Opinion_for_UDIN_Purposes\" title=\"ICAI FAQs on Auditor\u2019s Opinion for UDIN Purposes:\">ICAI FAQs on Auditor\u2019s Opinion for UDIN Purposes:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#Key_Points_from_the_Document\" title=\"Key Points from the Document\">Key Points from the Document<\/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\/icais-duty-to-investigate-on-financial-misconduct-non-practicing-cas\/#ICAI_to_Shift_UDIN_Portal_to_DigiCA_Platform\" title=\"ICAI to Shift UDIN Portal to DigiCA Platform\">ICAI to Shift UDIN Portal to DigiCA Platform<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29006\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA-.jpg\" alt=\"CA\" width=\"935\" height=\"531\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA-.jpg 780w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA--300x170.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA--768x436.jpg 768w\" sizes=\"(max-width: 935px) 100vw, 935px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bombay_High_Court_Directive_to_ICAI_for_former_CA_professional_ethics_enforcement\"><\/span><span style=\"color: #000080;\"><strong>Bombay High Court : Directive to ICAI for former CA professional ethics enforcement<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This Bombay High Court ruling in <em>Principal Commissioner of Income Tax vs. M\/s Buniyad Chemicals Ltd.<\/em> underscores the regulatory responsibilities of The Institute of Chartered Accountants of India set up by an act of parliament. The Institute of Chartered Accountants of India is established under the Chartered Accountants Act in addressing financial misconduct by former CAs. The bench of Justice M.S. Sonak and Justice Jitendra Jain questioned whether ICAI is taking action against CAs who, despite surrendering their COP, are involved in illegal financial activities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaways_from_the_Bombay_High_Court_Judgment\"><\/span><span style=\"color: #000080;\"><strong>Key Takeaways from the Bombay High Court Judgment: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Key Takeaways from the Bombay High Court Judgment in the matter of <em>Principal Commissioner of Income Tax vs. M\/s Buniyad Chemicals Ltd\u00a0\u00a0<\/em><\/p>\n<ul>\n<li>ICAI\u2019s Duty to Investigate Non-Practicing Chartered Accountants: The court has directed The Institute of Chartered Accountants of India to inquire into Chartered Accountants who, despite surrendering their Certificate\u00a0of\u00a0Practice, misuse their professional background for fraudulent activities.<\/li>\n<li>Mukesh Choksi &amp; Accommodation Entries: Mukesh Choksi, director of Buniyad Chemicals, admitted to Practicing as a Chartered Accountant from 1978 to 1993 before surrendering his Certificate\u00a0of\u00a0Practice. And engaging in accommodation entry business since 2000 to aid tax evasion through shell companies. Moreover that Facing multiple tax department actions, including searches in 2002, 2006, and 2009.<\/li>\n<li>Court\u2019s Concern on ICAI\u2019s Oversight: The HC questioned whether ICAI has the power to act against individuals who misuse their Chartered Accountant background after surrendering Certificate\u00a0of\u00a0Practice. It highlighted that professional accountability should extend beyond active practice to prevent financial fraud.<\/li>\n<li>ICAI\u2019s Regulatory Mandate Strengthened: The Institute of Chartered Accountants of India has been directed to examine whether Choksi\u2019s actions constitute professional misconduct under the Chartered Accountants Act, 1949. This ruling reinforces The Institute of Chartered Accountants of India\u2019s disciplinary role in tackling financial irregularities within the profession.<\/li>\n<li>ICAI Directed to Conduct Inquiry : The Bombay HC has now instructed ICAI to investigate whether Mukesh Choksi\u2019s actions amount to professional misconduct under the Chartered Accountants Act, 1949. If found guilty, ICAI could initiate disciplinary proceedings.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"In_summary_Bombay_High_Court_ruling_on_ICAI_ethics_enforcement_on_former_CA\"><\/span><span style=\"color: #000080;\"><strong>In summary Bombay High Court ruling on ICAI ethics enforcement on former CA. <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This Bombay High Court ruling is a significant directive for the ICAI to take strict action against CAs operating without a COP also engaged in misconduct. High Court judgement strengthens ICAI\u2019s authority to act against former professionals misusing their expertise. Also Emphasizes professional accountability beyond active practice. High Court ask to reinforce judicial oversight on financial irregularities. And Sends a clear message against fraudulent practices like accommodation entries for CA\u2019s. Bombay High Court Judgment Sets a precedent for stricter oversight of financial misconduct by ex- Chartered Accountants.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ICAI_FAQs_on_Auditors_Opinion_for_UDIN_Purposes\"><\/span><span style=\"color: #000080;\"><strong>ICAI FAQs on Auditor\u2019s Opinion for UDIN Purposes:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Key_Points_from_the_Document\"><\/span><span style=\"color: #000080;\"><strong>Key Points from the Document<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Compulsory Field : Auditor\u2019s Opinion is mandatory only for GST &amp; Tax Audit, Audit &amp; Assurance Functions<\/li>\n<li>Portal Options : Question: <em>\u201cIs Auditor&#8217;s Opinion on financial statements applicable to this audit?\u201d<\/em>\n<ul>\n<li>If Yes:\n<ul>\n<li>Select opinion type: Unmodified, Qualified, Adverse, Disclaimer<\/li>\n<li>Indicate additional reporting: KAM, EOM, Other Matter, Going Concern<\/li>\n<li>Choose Entity Type: Listed \/ Non-Listed<\/li>\n<\/ul>\n<\/li>\n<li>If No: No extra fields.<\/li>\n<\/ul>\n<\/li>\n<li>Modified Opinions (SA 705)\n<ul>\n<li>Qualified Opinion: Material but not pervasive misstatement or lack of evidence.<\/li>\n<li>Adverse Opinion: Material and pervasive misstatement.<\/li>\n<li>Disclaimer: Material and pervasive inability to obtain evidence.<\/li>\n<\/ul>\n<\/li>\n<li>When to Select \u201cNo\u201d : Only when <em>true and fair view<\/em> of financial statements is not required.<\/li>\n<li>Not Required For : Concurrent audit, stock audit, revenue audit, internal audit, valuation, system audit, compilation under SRS 4410.<\/li>\n<li>Tax Audit (Sec 44AB) : Opinion required under Clause 3(b) of Form 3CB.<\/li>\n<li><strong>Special Cases<\/strong>\n<ul>\n<li>Maharashtra Charitable Trust Act: Opinion required.<\/li>\n<li>Going Concern: Report as per SA 570.<\/li>\n<li>Audit Trail &amp; IFC reporting: Modifications here do not affect main opinion for UDIN.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ul>\n<li>Details of ICAI FAQ on UDIN :<a href=\"https:\/\/carajput.com\/archives\/icai-faqs-on-auditor-s-opinion-for-udin-purposes.pdf\">link\u00a0<\/a><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ICAI_to_Shift_UDIN_Portal_to_DigiCA_Platform\"><\/span><span style=\"color: #000080;\">ICAI to Shift UDIN Portal to DigiCA Platform<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Institute of Chartered Accountants of India has announced that the existing UDIN Portal will migrate to the ICAI DigiCA Platform on 20th December 2025. The upgraded system aims to offer a better interface, improved usability, and enhanced features for members.\u00a0Members are advised to generate required UDINs before the scheduled downtime on 19th December 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court : Directive to ICAI for former CA professional ethics enforcement This Bombay High Court ruling in Principal Commissioner of Income Tax vs. M\/s Buniyad Chemicals Ltd. underscores the regulatory responsibilities of The Institute of Chartered Accountants of India set up by an act of parliament. The Institute of Chartered Accountants of India &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10204],"tags":[10223],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29005"}],"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=29005"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29005\/revisions"}],"predecessor-version":[{"id":30702,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29005\/revisions\/30702"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}