The Institute of Chartered Accountants of India (ICAI) has reprimanded CA Anita Kumari for professional misconduct in connection with TDS-related irregularities at Orchid Medical Centre Pvt. Ltd., Jharkhand. The disciplinary proceedings followed a complaint alleging that TDS was deposited on the PAN of the respondent’s mother and other relatives of company staff without proper authorization. The Disciplinary Committee noted that Rs. 53,100, deposited in FY 2016-17, remained with the respondent until February 2018, suggesting wrongful retention and ill intent. While Kumari claimed that the confession letter was written under management pressure and that TDS filings were handled by another individual, the Committee found no evidence supporting these assertions. It also rejected her arguments regarding reconciliation of consultancy fees and advances. Despite written representation submitted in her defense, the Committee concluded that the misconduct was established under Item (4) of Part II of the Second Schedule and Item (2) of Part IV of the First Schedule to the CA Act, 1949. Finding her guilty of professional and other misconduct, the Committee decided to reprimand Kumari under Section 21B(3)(a). The order was signed by the presiding officer and committee members on May 28, 2024.
THE INSTITUTE CHARTERED ACCOUNTANTS OF INDIA
[DISCIPLINARY COMMITTEE [BENCH-II (2024-2025)]
[Constituted under Section 21B of the Chartered Accountants Act, 1949]
ORDER UNDER SECTION 218 (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/216/2019-DD/223/2019-DC/1515/2021]
In the matter of:
Shri Mayank Raaj
Sr. Manager (HR),
M/s Orchid Medical Centre Pvt. Ltd.
…Complainant
Versus
CA. Anita Kumari
…Respondent
Members Present:-
CA. Ranjeet Kumar Agarwal, Presiding. Officer (in person)
Mrs. Rani S. Nair, IRS (Retd.), Government Nominee (through VC)
Shri Arun Kumar, lAS (Retd.), Government Nominee (in person)
CA. Sanjay Kumar Agarwal, Member (in person)
CA. Cotha S Srinivas, Member (through VC)
Date of Hearing : 10th April, 2024
Date of Order: 28th May, 2024
1. That vide Findings 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 was, inter-alias of the opinion that Anita Kumari (hereinafter referred to as the Respondent”) is GUILTY of Professional and Other Misconduct falling within the meaning of Item (4) of Part II of the Second Schedule and Item (2) of Part IV of the First 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 a communication was addressed to her thereby granting opportunity of being heard in person / through video conferencing and to make representation before the Committee on 10th April 2024.
3. The Committee noted that on the date of hearing held on 10th April 2024, the Respondent was not present before it and vide email dated 21st February 2024 submitted her written representation on the Findings of the Committee. Keeping in view the provisions of Rule 19(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Committee was of the view that the Respondent has nothing more to represent before it and thus, decided to consider her case for award of punishment on the basis of material available on record. The Committee noted that the Respondent in her written representation on the Findings of the Committee, inter-alia, stated as under:-
(a) The Respondent has already paid the money on 20.02.2018 and 21.02.2018.
(b) The confession letter was written under pressure.
(c) The TDS return was not deposited by her on her mother’s PAN. The TDS deposit/return task Was done by Mr. Akash Saha, relative of the directors. TDS return is done in bulk and not
(d) For the Government doctors and a few staff working at the Company during those 3 years, TDS was deposited on their mother, father, and relatives’ PAN after instruction of directors.
(e) IDS deposited on Respondent’s mother’s PAN was returned by her only in good faith and not in acceptance of any wrongdoing. The amount return responsibility was on her mother and not her. She did not take the refund in her account.
(f) All payments of vendor, staff, doctors, TDS, GST, pharmacy, etc. were done by the directors and Mr. Akash Saha. An interest of Rs.40,000/- was also charged by the Company from the Respondent.
(g) The Professional Fee for February 2018 was approx. Rs. 34,000/- which was not, received by the Respondent as it was not given by the Company. Thus, the advance clue was not Rs.44,604/- as calculated in Para 14.3 of the Findings. The Company recovered more than the actual amount from her.
4. The Committee considered the reasoning as contained in Findings holding the Respondent Guilty of Professional Misconduct vis-à-vis written representation of the Respondent. On consideration of the representation of the Respondent, the Committee was of the view that the same were basically a reiteration of the submissions made by the Respondent during the course of hearing, due cognizance of which has already been taken by the Committee before arriving at its Findings in the instant case.
5. Keeping in view the facts and circumstances of the case, material on record including written representation on the Findings, the Committee noted that the Respondent in her submissions submitted that the Company after discussions accepted that the TDS credited will be adjusted while crediting the consultancy fees and that the Company also adjusted the same. The Respondent brought on record a reconciliation statement to establish her stand. The Respondent accordingly mentioned that amount of advance given to her was Rs. 25,661/-. However, the Committee noted from the same reconciliation sheet that TDS appearing in Form 26AS of the Respondent/ her firm was Rs. 1,16,887/-. Hence, the Committee viewed that advance due to the Respondent should be Rs. 44,604/- (Rs.10,24,044 — Rs. 9,79,440 (gross receipts) received by the Respondent and not Rs. 25,661/- as claimed by the Respondent. By including the figure of Rs. 25,661/-, the Respondent submitted that the amount claimed by the Company was Rs.1,18,761/- The Respondent submitted copy of her Bank Statement account to substantiate her claim.
5.1 The Committee noted that the receipt of the amount is not disputed by the Complainant. The Respondent during her submissions submitted that the confession letter was written by her under pressure of management of Complainant Company. The Respondent failed to bring any documentary evidence on record regarding her retraction for such confession letter. The Respondent brought on record a copy of Form 26AS for the financial year 2016-17 of her mother namely Mrs. Usha Singh wherein Rs. 53,100/- has been deposited as TDS during F.Y. 2016-17 on different dates during October 2016 to March 2017 which was returned in February 2018. The Income Tax return of Ms. Usha Singh was filed on 25th July 2017. The Committee hence observed that the amount of Rs. 53,100/- was illegally retained by the Respondent during 2017 which proves her ill intentions.
5.2 Hence, professional and other misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 7th February 2024 which is to be read in consonance with the instant Order being passed in the case.
6. Accordingly, the Committee was of the view that ends of justice will be met if punishment is given to her in commensurate with her professional and other misconduct.
7. Thus, the Committee ordered that CA. (Ms.) Anita Kumari, Jharkhand be Reprimanded under Section 21B(3)(a) of the Chartered Accountants Act 1949.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(MRS. RANI S. NAIR, IRS RETD.)
GOVERNMENT NOMINEE
Sd/-
(SHRI ARUN KUMAR, IAS RETD.)
GOVERNMENT NOMINEE
Sd/-
(CA. SANJAY KUMAR AGARWAL)
MEMBER
Sd/-
(CA. COTHA S SRINIVAS)
MEMBER
