MCA Dismisses ICAI’s Appeal Against ICTPI Over Using the Word ‘Chartered’

The Ministry of Corporate Affairs (MCA) has rejected an application filed by the ICAI against the Institute of Chartered Tax Practitioners India (ICTPI) regarding the misuse of the word “chartered” in its name.

The Institute of Chartered Accountants of India (ICAI) contended that ICTPI’s name and its “Chartered Tax Practitioners” course might mislead people into thinking it’s connected to ICAI. It said that this could affect ICAI’s reputation, which violates Section 24A of the Chartered Accountants Act, 1949.

However, following the lengthy hearings, the Regional Director (RD) of the MCA rejected ICAI’s appeal, indicating that “Chartered” is a generic word which is widely used in a variety of different contexts, and doesn’t always indicate a statutory professional qualification. The director noted that numerous firms include “Chartered” within their names but with no backing from the law.

The Director also noted that both the ICTPI and ICAI work in different fields. ICAI manages audit and accountancy, while tax practitioners work only in the taxation field. Additionally, ICAI itself confessed that no specific qualification is required to become a tax practitioner.

What Did ICTPI Reply?

ICTPI defended itself by saying that it has been running independently since 2020, with proper name approval and recognition under government skill development programs. ICTPI also agreed to put clear disclaimers on its website and in its course materials and to clarify that it has no affiliation with ICAI.

The Regional Director said that ICTPI has a registered trademark, and no proof of public confusion or misrepresentation was found. As a result, ICAI’s application was dismissed.