In a disciplinary order dated August 20, 2024, the Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) found CA Arunabha Chattopadhyay guilty of professional misconduct under Clause (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. The case was initiated following a complaint by Anand Kumar, IRS, Commissioner of Income Tax (Exemption), Kolkata, relating to financial irregularities in a charitable society audited by the Respondent for FYs 2012-13 and 2013-14. The Society had allegedly collected donations from various donors but returned the money in cash while falsely showing expenses through bogus purchases. The Committee held that the Respondent failed to exercise professional scepticism and relied solely on documents provided by the Society, without conducting basic verification such as examining the inward goods register or confirming with suppliers. Despite being granted an adjournment earlier, the Respondent did not appear at the final hearing, and the Committee proceeded ex-parte. During the earlier stages, the Respondent admitted he did not perform detailed checks due to time constraints. The Committee concluded that the CA showed gross negligence by not verifying financial records and donor authenticity, which could have revealed the fraudulent practices. As a consequence, the Committee ordered removal of his name from ICAI’s register for 3 months and imposed a fine of ₹1,00,000, to be paid within 90 days. Failure to comply will result in an additional 30-day suspension
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, 1949]
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.
In the matter of:
Shri Anand Kumar, IRS, Commissioner of Income Tax (Exemption),
-Vs.-
CA. Arunabha Chattopadhyay,
[PR/G/108/2017/DD/114/2017/DC/1662/2022]
Members present:
i) Charanjot Singh Nanda, Presiding Officer
ii) Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee)
iii) Gyan Chandra Misra, Member
Date of Hearing : 14.05.2024
Date of Order : 20.08.2024
1. That vide findings dated 08-02-2024 under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Committee noted that CA. Arunabha Chattopadhyay, (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of item (7) of Part I of the 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 a communication dated 03-05-2024 was address to him thereby granting opportunities of being heard in person / through video conferencing and to make written & verbal representation before the Committee on 14-05-2024.
3. The Committee noted that despite serving notice for hearing, neither the Respondent was present, nor any adjournment request has been placed by him. The Committee observed that in its previous hearing held on 2nd April 2024, an adjournment was sought by the Respondent and the same was granted to him. Accordingly, since one adjournment was already granted to the Respondent, the Committee decided to proceed IP the matter ex-parte.
4. The Committee considered the reasoning as contained in findings holding the Respondent Guilty of Professional misconduct vis-a-vis written submissions of the Respondent.
5. The Committee thus viewed that the Professional misconduct on the part of the Respondent has ,beep established within the meaning of item (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.
6. Keeping in view the facts and circumstances of the case, material on record and based on the findings of the Committee, the Committee ordered that, the name of the Respondent i.e., CA, Arunabha Chattopadhyay be removed from the Register of Members for a period of 3 months and also to impose a fine of Rs. 1,00,000/- (Rupees One lakh only) upon him to be paid within 90 days of receipts of this Order. The Committee also ordered that if the Respondent fails to pay the fine within the stipulated period as aforesaid, his name be removed from the Register of Members for an additional period of 30 days.
Sd/-
CHARANJOT SINGH NANDA
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATRA, I.A.S.
(RETD.)) (GOVERNMENT NOMINEE)
Sd/-
(CA. GYAN CHANDRA MISRA)
(MEMBER)
DATE: 20.08.2024
PLACE: New Delhi
