Disciplinary Committee (Bench-I) of the Institute of Chartered Accountants of India (ICAI), under Section 21B(3) of the Chartered Accountants Act, 1949, issued an order against CA. Anand Chauhan, following a complaint by Shri Vineet Rai, Deputy Registrar of Companies, West Bengal. After investigation, the Committee found CA. Chauhan guilty of professional misconduct under Item (7) of Part I of the Second Schedule to the Act, related to the filing of AOC-4 without a cash flow statement. During the hearing on 2nd April 2024, the respondent, appearing via video conferencing, stated that although he audited the concerned company, he was not responsible for the ROC filing. He claimed that the company had submitted an application to re-submit the AOC-4 with the required cash flow statement. Despite his explanation, the Committee, after considering all submissions and the evidence on record, concluded that the professional misconduct was established. Consequently, a penalty of ₹25,000 was imposed on CA. Anand Chauhan, with a directive to pay the amount within 90 days of receiving the order. In case of non-payment, his name will be removed from the Register of Members for 15 days. The order was issued on 26th June 2024 and signed by the Committee members: CA. Charanjot Singh Nanda (Presiding Officer), Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee), and CA. Chandrashekhar Vasant Chitale (Member).
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
(DISCIPLINARY COMMITTEE (BENCH-I (2024-2025)]
Constituted under Section 21B of the Chartered Accountants Act, 19491
ORDER UNDER SECTION 21B(3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007.
[PR/G/60/2022/DD/185/2022/DC/1623/2022]
In the matter of: –
Shri Vineet Rai,
Indian Corporate Law Services,
…..Complainant
-Vs-
CA. Anand Chauhan,
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee)
CA. Chandrashekhar Vasant Chitale, Member
Date of Hearing : 2nd April 2024
Date of Order : 26.06.2024
1. That vide finding under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee noted that CA. Anand Chauhan, (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of Item (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said findings, an action under Section 21B(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and communication was addressed to him thereby granting opportunity of being heard in person / through video conferencing and to make written & verbal representation before the Committee on 2nd April 2024.
3. The Committee noted that on the date of the hearing held on 2nd April 2024, the Respondent was present through video conferencing, and he made his verbal submission on the findings of the Disciplinary Committee.
4. In his verbal submission the Respondent inter alia stated that he has done the audit of the subject Company, but the ROC filing was not done by him. He further stated that the Company has submitted an application to the ROC for re-submission of the AOC-4 along with the Cash flow statement.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-a-vis verbal submissions of the Respondent.
6. Keeping in view the facts and circumstances of the case, material on record including verbal submissions of the Respondent on the findings of the Committee, the Committee is of the view that the professional misconduct on the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs. 25,000/- (Rupees Twenty-Five Thousand only) be imposed upon the Respondent i.e. CA. Anand Chauhan, to be paid within 90 days of receipt of the Order. If the Respondent fails to pay the fine within the stipulated period, his name be removed from the Register of Member for a period of fifteen days.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATARA),
I.A.S. (RETD.), (GOVERNMENT NOMINEE)
Sd/-
CHANDRASHEKHAR VASANT CHITALE
(MEMBER)
Place : 26.06.2024
Date : New Delhi
