The Bombay High Court has asked the Institute of Chartered Accountants Of India (ICAI) for action against Chartered Accountants (CAs) without Certificate of Practice (COP) engaged in misconduct.
The bench of Justice M.S. Sonak and Justice Jitendra Jain has observed, “we will be failing in our duty as a Court of law if we do not comment on the accommodation entry provider, Mr. Mukesh Choksi through his web of shell companies and various admissions made by the counsel for the respondent-assessee. It is also important to note that Mr Mukesh Choksi, director of the respondent-assessee in his answer to question No.14 of the statement has admitted that he was a practicing Chartered Accountant but has surrendered the Certificate of Practice (COP) in 1993 and thereafter is only engaged in the business of providing accommodation entries. He has also stated that search action has been taken against him/his companies more than once.”
The bench was surprised that a Chartered Accountant who may not be holding a COP but, if involved in illegal activities, as to whether any action is or can be taken by the Institute of the Chartered Accountants of India against such a person. Suppose no action is taken against such a person.
The court directed the Institute of Chartered Accountants of India to inquire whether such a person is liable for any professional misconduct as per the Chartered Accountant’s Act, 1949.
Case Details
Case Title: PCIT Versus M/s Buniyad Chemicals Ltd.
Case No.: Income Tax Appeal No.1796 Of 2018
Date: 17 March 2025
Counsel For Petitioner: Suresh Kumar
Counsel For Respondent: Aditya Sharma
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