ICAI Fines Chartered Accountant for Misleading Employment Information and Violating Professional Conduct

The Institute of Chartered Accountants of India (ICAI) has taken disciplinary action against a Chartered Accountant for providing incorrect employment information in his employment data form, resulting in a six-month suspension and a Rs 50,000 fine.

The Complainant, EO of Gimpex-Imerys India, Pradeep Kothari, had employed the respondent, CA Rajesh Kumar Gupta, a practising chartered accountant holding a Certificate of Practice since April 2012. The respondent was allegedly running his own firm named “Rajesh H Gupta & Co.”

The first allegation was that CA Rajesh Kumar Gupta gave wrong information in the employment data form about his practice status and past employment. The second allegation was that even though he was in practice and had a certificate of practice from 2012, he joined full-time employment with this and earlier companies and did not inform ICAI about the same.

The ICAI Disciplinary Committee observed that in the employment data form, the respondent mentioned self-practice since May 2019. However, as per the ICAI members’ records, he was in full-time practice, running his firm since 17th April 2012, which proved that the respondent had given incorrect information about him in the employment data form. Further, the respondent’s appointment letter clearly mentioned that the respondent shall not engage in any private trade, business or employment, either directly or indirectly, either full-time or part-time, either with or without remuneration, either as employer or employee, or either as partner or advisor.

Regarding the second allegation, the committee observed that the income of his partnership firm for the AY 2022-23 was Rs 93,170 and his as per his return, and his personal income was Rs 1,38,500, but he did not report any salary in his tax return. However, his employer’s Form 16 showed he received a salary of Rs. 6,16,022 salary on which TDS was deducted, proving he was employed during that time. The committee further found that he had a Certificate of Practice since April 2012 and runs his CA firm. The UDIN data showed he generated audit and certificate documents 10 times during this period.

Based on these findings, the respondent was held Guilty of Professional Misconduct Under Item (1) of Part II of the second schedule to the Chartered Accountants Act, 1949. His name was removed from the Registrar of Members for 6 months, and the ICAI also imposed a fine of Rs 50,000, required to be paid within 60 days.