INCOME TAX/CHARTERED ACCOUNTANT ACT: Where petitioner company filed a petition against member of ICAI i.e. ‘HA’, alleging verification of e-form containing false statements in respect of seven companies, in view of fact that neither petitioner not its directors had any dealing with said companies or with ‘HA’ and petitioner was carrying on activity of filing and pursuing complaints against various CAs as an organised activity, instant petition against ‘HA’ was to be dismissed

Section 22 of the Chartered Accountants Act, 1949 – Professional or other misconduct – One ‘HA’ was a member of ICAI and was a practicing chartered accountant – Petitioner company filed a complaint with ICAI alleging that in respect of seven separate companies ‘HA’ verified e-form (23AC) containing false statements and thus, ‘HA’ was guilty of professional misconduct – Director (Discipline) of ICAI examined material and formed a prima facie opinion that ‘HA’ was not guilty of professional misconduct as alleged – Board of Discipline concurred with said view – It was noted that all seven companies were admittedly closely held private companies and neither petitioner nor its directors had any dealing with said companies or with ‘HA’ – Further, petitioner had been pursuing complaints against various members of ICAI with relentless fervour and had filed various petitions before instant court and instant Court was of view that litigants, such as petitioner, who had made litigation their business/vocation ought to be discouraged and, thus, dismissed those petitions with cost, however, that did not seem to have discouraged petitioner from filing such petitions – This clearly indicated that petitioner was carrying on activity of filing and pursuing complaints against various chartered accountants as an organised activity, independent of object for which it was incorporated and thus, ultra vires of memorandum of Association of petitioner company – Further, there was no element of public interest involved in complaint made – Whether thus, instant petition filed by petitioner against impugned order passed by Board of Discipline was to be dismissed – Held, yes

Wholesale Trading Services (P.) Ltd. v. Institute of Chartered Accountants of India