Mr. A, a practicing Chartered Accountant has been found guilty in respect of Professional Misconduct. So, Mr. A, a Chartered Accountant in practice has been suspended from practice for a period of 4 months. During the said period, though he did not undertake the audit assignment since he had surrendered certificate of practice, he had appeared before Income Tax authorities in his capacity as a Chartered Accountant.
Undertaking Tax Representation Work:
A chartered accountant not holding certificate of practice cannot take up any other work because it would amount to violation of the relevant provisions of the Chartered Accountants Act, 2053. In case a member is suspended and is not holding Certificate of Practice, he cannot in any other capacity take up any practice separable from his capacity to practices as a member of the Institute. This is because once a member becomes a member of the Institute; he is bound the provisions of the Chartered Accountants Act, 2053 and its Regulations. If he appears before the income tax authorities, he is only doing so in his capacity as a chartered accountant and a member of the Institute. Having bound himself the said Act and its Regulations made there under, he cannot then set the Regulations at naught contending that even though he continues to be a member and has been punished suspension, he would be entitled to practice in some other capacity. Thus, in the instant case, a chartered accountant would not be allowed to represent before the income tax authorities for the period he remains suspended. Accordingly, in the present case he is guilty of professional misconduct. However, if the Chartered Accountant is summoned Income Tax Authorities for any work conducted the person before suspension of COP ICAN, the Chartered Accountant will be answerable to the authorities.