Recent Case Law on Professional Misconduct

Council of Institute of Chartered Accountants of India Vs Ajay Kumar Gupta Ref No 1/2010 Delhi High Court Dated 28^th Feb 2012

 

Issue

The respondent issued a certificate in Form No 10CCAC to the tune that the profit of his client Rs 18.33 Lacs was exempt under section 80HHC

 

Facts of the Case

The respondent has issued a certificate under section 80HHC in form No 10CCAC. The client of the respondent has for the AY 1998-99 shown an export turnover of Rs 82,51,043/- and a profit of Rs 18,32,985/- . The deduction is available only when the export proceeds are received in convertible foreign exchange in a period of six months.

 

During the Assessment proceeding the ACIT recorded the statement of the assessee wherein he admitted that the exports proceeds have not been realized and a suit of recovery has been filled.

 

The respondent pleaded his sickness, has otherwise unblemished practice of 21 years and that the incident is old which may provide some mitigating factors in his favour.

 

Held

 

After weighing the aforesaid factors on either side, we are of the view that in the present case the respondent cannot be let off merely by giving him reprimand. Some penalty needs to be imposed so that it acts as deterrent and such professional misconduct are not committed. Weighing the circumstances, we are of the opinion that the ends of justice would be subserved by removing the name of the respondent from the Register of Members for a period of six months.