D.K. Agrawal Vs Council of Institute of Chartered Accountants of India (Supreme Court of India)
Hon’ble Supreme Court held that the Council of Institute of Chartered Accountants of India (Respondent) needs to necessarily record reasons in its report as to why a CA must be de-registered. It has been held that the Respondent needs to give its own independent findings while accessing the need of de-registering a CA for misconduct instead of making recommendations mechanically. The same was absent in the present case. Hence, the appeal was allowed.
Facts:
D.K. Agrawal (“Appellant”) is a chartered accountant having his Office as M/s, Dinesh K. Agrawal & Co., Chartered Accountants.
In 2 separate instances, the Office of the Inspecting Assistant Commissioner of the Income Tax had sent a communication to ICAI alleging that the Appellant was indulging in professional misconduct and at one instance had interpolated some of assessees’ copies of challans to show higher figures and claimed the higher amount from them.
The Respondent was of the prima facie opinion that the Appellant was guilty of professional and/or other misconduct and accordingly referred the case to the Disciplinary Committee constituted under the Chartered Accountants Act, 1949 (“the CA Act”).
After some rounds of hearing opportunity being afforded to the Appellant in regard of different instance of misconduct, in terms of Section 21(5) of the CA Act, the disciplinary cases were forwarded to the Allahabad High Court to pass necessary orders in accordance with Section 21(6) of the CA Act with the recommendation that the name of the Appellant should be removed from the Register of the Members.
Allahabad High Court accepted the recommendations of the Respondent directed removal of the Appellant’s name from the Register of the Membership permanently. The Appellant has preferred this Appeal against the said actions.
Findings:
