Page 382 - CA Final PARAM Digital Book.

Answer Part I -- Relevant Laws
▪ Clause (11) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ A Chartered Accountant in Practice is deemed to be guilty of professional misconduct if he engages
in any business or occupation other than the profession of Chartered Accountant unless permitted
by the Council so to engage.

Further, the Chartered Accountants Regulation, 1988 provides that a Chartered Accountant in
practice shall not engage in any other business or occupation other than the profession of
accountancy except with the permission granted in accordance with a resolution of the Council.
According to the same, general permission has been granted for authorship of books and articles.

Part III – Case Discussion
➢ In the given case, CA. Ritu has written a cookery book without obtaining specific or prior approval
of the Council.

Part IV – Conclusion
➢ On this context, it may be noted that no specific permission is required to be obtained for authorship
of books and articles. Therefore, CA. Ritu would not be held guilty of professional misconduct under
Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
Author’s Note
• Specific permission is required for Editorship of journals other than professional journals. CA
Ritu is guilty of professional misconduct under Schedule I Part I Clause 11?
o She is writing a book, you can write book on any topic without any permission, firm
name should not be mentioned it’s not editorship, so not guilty

First Schedule, Part I,Cl,6 Clarification (Greeting Cards & Old Course – (PM17, N17R, N18R)
QNO
669.000 Invitations)/ Marriage
TITANIUM CNO – PE.1140
Mr. Raj, a renowned practicing Chartered Accountant, decided to tie his knot with Ms. Anjani. While giving
order for marriage invitation cards, Mr. Raj instructed to add his designation “Chartered
Accountant” with his name. Later on, the cards were distributed to all his relatives, close friends
and clients.

OR
Mr. Swapnil, a renowned practicing Chartered Accountant, decided to tie his knot with Ms. Anjani. While
giving order for marriage invitation cards, Mr. Swapnil instructed to add his designation “Chartered
Accountant” with his name. Later, the cards were distributed to all his relatives, close friends and clients.

Answer Part I -- Relevant Laws
▪ Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws

➢ A Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he
solicits clients or professional work either directly or indirectly by circular, advertisement, personal
communication or interview or by any other means.

However, the Council of the ICAI is of the view that the designation “Chartered Accountant” as well
as the name of the firm may be used in greeting cards, invitations for marriages and religious
ceremonies and any other specified matters, provided that such greeting cards or invitations etc.
are sent only to clients, relatives and close friends of the members concerned.

Part III – Case Discussion
➢ In the given case, Mr. Raj instructed to write designation “Chartered Accountant” on his marriage
invitation cards and distributed the same to all his relatives, close friends and clients.

Part IV – Conclusion
➢ On this context, it may be noted that the Council has allowed using designation “Chartered
Accountant” in invitations for marriages, provided these are sent only to clients, relatives and close
friends of the members concerned. Therefore, Mr. Raj would not be held guilty of professional
misconduct under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
Author’s Note:
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